The Kentucky Attorney General filed a suit in 2011 against Daymar College, which has a campus in Owensboro, accusing the school of misleading students.
The suit claims the school had deceptive advertising and forced students to buy books new at higher prices in their bookstore.
It also alleges students had restricted access to their own financial aid accounts, saying the school was holding students' money and directing how it was spent.
Attorney General Jack Conway believes the school has thousands of state consumer protection law violations.
Right now the suit is in 'discovery' mode and Conway expects that to wrap up by next summer. If they don't agree to a settlement by then, Conway says they'll take the case to a jury trial.
"These schools make a lot of profit and if they're going to make that much profit off of our taxpayer dollars in the form of federal scholarship money or state scholarship money, if they're going to make that profit, they're going to need to abide by the Kentucky Consumer Protection Act," Conway said.
More than 140 current and former Daymar students also filed suit against the school in 2011, saying they were cheated out of educational opportunities.
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