Flores v. Technical Career Institutes, Inc. (2018)
Adv. Proceeding No. 18-01554 (Bankr. S.D.N.Y.)
In June 2018, NYLAG’s Special Litigation Unit and co-counsel Milbank, Tweed, Hadley & McCloy LLP filed a class action adversary proceeding complaint in the bankruptcy of the Technical Career Institutes, Inc. (TCI), a defunct for-profit college. In the months leading up to TCI’s bankruptcy, TCI faced increasing financial distress. It stopped paying its employees’ salaries and benefits and stopped paying its rent. In August 2017, TCI told students that they should register for Fall 2017 classes “as soon as possible.” Based on this and other statements, many students promptly went to TCI’s offices to register for classes and pay tuition and fees. TCI’s representatives accepted these payments and provided students with schedules of their classes. After pocketing the students’ payments for the Fall 2017 semester, the school closed and then filed for bankruptcy. Named Plaintiffs David Flores, Jenny Gonzalez, and Armando Pardo are former TCI students who are creditors of TCI’s estate, because they paid money to TCI shortly before it closed for Fall 2017 classes that never happened. Their lawsuit alleges, among other things, that TCI defrauded them by soliciting their payments and enrollment without telling them that it was likely to shut down.
NYLAG Attorneys: Danielle Tarantolo, Jane Greengold Stevens, Shanna Tallarico, Jessica Ranucci
Co-Counsel: Milbank, Tweed, Hadley & McCloy LLP