A judge has granted a prejudgment remedy for the state, reinforcing that Stone Academy "misrepresented significant aspects of their practical nursing program," according to state officials.
The prejudgment remedy makes sure at least $5 million is set aside for the state as a legal battle with the shuttered school's owner continues.
Attorney General William Tong sued Stone Academy, Paier College of Art and their owner Joseph Bierbaum last year, alleging numerous violations of the Connecticut Unfair Trade Practices Act.
Tong alleges that the owners of the former for-profit nursing school siphoned millions of dollars and left the school financially incapable of living up to its promises.
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In granting this prejudgment remedy, the judge said that the state has established probable cause that it will prevail in its case against Stone Academy.
Defendants “materially misrepresented to consumers significant aspects of Stone Academy’s practical nursing program,” the judge wrote. The judge also found that Stone and Bierbaum violated the law “knowingly,” concluding that the problems at Stone were not simply “consequences relating to the [COVID-19] pandemic” as they have claimed, according to Tong's office.
Former Stone Academy students were granted a $5 million prejudgment remedy in December. Monday's decision is the second prejudgment remedy that has been granted in this case.
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“The magnitude of this prejudgment remedy and the strong words in this decision send a clear message to Stone Academy and its owners—you knowingly broke the law, you harmed students, and you will be held accountable. We are demanding millions of dollars in penalties and recovery of ill-gotten gains, and we’re going to fight for every measure of justice possible,” Tong said.
State officials said the remedy prevents defendants from offloading or shifting resources to evade accountability during proceedings.
