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Adtalem Urged to Freeze Walden Deal While U.S. Probe Pending

  • Engine Capital, Hawk Ridge want $1.5 billion deal put on hold
  • Walden University acquisition follows DeVry divestment
Mixed race nurse working at computer

Source: Getty Images

Adtalem Global Education Inc. is being urged by two investors to halt its $1.5 billion acquisition of Walden University until the U.S. Justice Department completes an investigation of the for-profit university.

Engine Capital and Hawk Ridge Partners, which collectively own a 3.9% stake in Adtalem, said in a letter to the company’s board Monday that they believe it is understating the severity of potential violations involving Walden’s nursing program, noting that four agencies are involved in the investigation.