The students via the state attorney general accused the college of overstating its job-placement track record when it recruited them.
Kentucky's AG brought the suit on their behalf.
http://www.courier-journal.com/story/news/education/2015/09/04/daymar-settle-ex-students-ky-ag/71705304/
http://chronicle.com/blogs/ticker/for-profit-college-will-pay-former-students-more-than-1-million/104239?cid=pm&utm_source=pm&utm_medium=en
A few years ago, there was a rash of cases brought by law school alums making similar claims. Most of these cases were tossed out, although one such suit against Delaware's Widener Law School survived the motion to dismiss.
Students and grads trying to establish fraud in admissions advertising have an uphill fight at best. That's why this settlement seems to me to be a significant sign that the fraud-in-the-inducement theory isn't the dead letter we might have thought it was, where inflated job-placement claims are concerned.
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