Owner of 6 Iowa beauty schools settle suit with AG’s office

DES MOINES, Iowa (AP) — The owner of six cosmetology schools in Iowa will forgive some student debt, pay a fine and submit to outside oversight to settle a lawsuit filed by the Iowa attorney general’s office.

The Des Moines Register reports (http://dmreg.co/299MrbJ ) La’ James International Colleges agreed to forgive $2.1 million in student debt and pay a $550,000 fine. The settlement also requires former U.S. Attorney Nicholas Klinefeldt to serve at least three years as an independent settlement administrator who can oversee the company’s compliance.

The agreement settles a lawsuit filed in 2014 that had contended La’ James engaged in deceptive and unfair practices in its marketing, enrollment and instruction.

La’ James has schools in Cedar Falls, Cedar Rapids, Davenport, Fort Dodge, Iowa City and Johnston.

The company didn’t admit wrongdoing in the settlement.

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Information from: The Des Moines Register, http://www.desmoinesregister.com

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