DeVry Settled With the Feds, but More Trouble Looms
Thursday's limited settlement with the Education Department doesn't resolve the biggest problems for the company.
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The U.S. Department of Education and DeVry Education Group struck a narrow agreement Thursday to dismiss allegations that the giant for-profit college chain couldn't back up yearslong marketing claims about its graduates' career success.
Investors initially cheered the announcement, causing the company's stock to soar 8.6 percent, to $25 per share, but the rally was short-lived. DeVry shares closed up 1.3 percent on Thursday at $23.34.