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Student Defense Files New Lawsuit Against Lambda School

April 15, 2022 

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Student Defense Files New Lawsuit Against Lambda School

CEO Austen Allred Named in Latest Case Filed on Behalf of Defrauded Former Student

Student Defense, Black & Buffone PLLC, and Cotchett, Pitre & McCarthy LLP filed a new legal challenge today against the for-profit coding bootcamp formerly known as Lambda School (now called Bloom Institute of Technology). The case was filed in California state court on behalf of former Lambda student Emily Bruner and names the school’s CEO, Austen Allred, as a defendant in his personal capacity.

While this is the first court case filed against Lambda with these allegations, it joins the many other arbitrations filed in the last year alleging that Lambda misled students with false job placement numbers, operated illegally without approval from the California Bureau for Private Postsecondary Education (BPPE), and misrepresented practices around the financing of income share agreements (ISA’s). Student Defense previously filed three arbitrations in May 2021 on similar grounds, which remain ongoing.

“I feel like Lambda misled me and my classmates at every turn — about their job placement rates and about how they would prepare us for jobs in the field. I was even more shocked when I found out they were operating illegally,” Ms. Bruner said. “I took time away from my young son and other career opportunities to participate in a program based on lies. While I'm thankful I opted out of arbitration so I can have my day in court, I wish my classmates who were also misled could be here with me.”

Lambda shunted most of its students into mandatory arbitration agreements, a tactic frequently used by unscrupulous for-profit colleges to shield themselves from full accountability for their actions. The plaintiff in this case opted out of her arbitration clause, allowing her to file the civil lawsuit against Lambda and Allred.

“It’s illegal and immoral for schools to lure students into costly income share agreements by promoting false job placement rates, but that’s one of the many illegal things that Lambda School did,” said Alex Elson, Student Defense Vice President. “We’re proud to fight on behalf of students to hold Lambda and its executives accountable for the serious damage they have done.”

More information on Student Defense’s active cases against Lambda can be found on their website.