A single mom who signed up for a $30,000 income-share agreement at a for-profit coding bootcamp has filed a lawsuit in California, alleging she entered the agreement under “false pretenses.”
Redmond, Washington-based Emily Bruner is suing Bloom Institute of Technology, formerly known as Lambda School, and its head Austen Allred, alleging they misrepresented job placement rates, operated without a license during her course of study, and hid the “true nature” of the school’s financial interest in students’ success.
“I feel like Lambda misled me 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,” Bruner said in a press release.
“I took time away from my young son and other career opportunities to participate in a program based on lies,” added Bruner, who’s seeking a refund from the school as well as monetary damages. “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.”
Amid the tight labor market, some employers are dropping the requirement for a college degree during the hiring process, pushing more Americans to turn to short-term certificates or programs to gain skills such as coding.
But the Student Borrower Protection Center, an advocacy group, warns students of the potential harms of income-share agreements. The group contends that, rather than being a solution to the student debt crisis, these agreements can pose serious harms to borrowers.
Another advocacy group, the National Student Legal Defense Network, filed the lawsuit in San Francisco County Court on Friday afternoon on behalf of Bruner along with law firms Black & Buffone PLLC, and Cotchett, and Pitre & McCarthy LLPs.
“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,” Alex Elson, Student Defense Vice President, said in a press release. “We’re proud to fight on behalf of students to hold Lambda and its executives accountable for the serious damage they have done.
