Strategic Education, Inc.
STRA
Consumer Staples
1
exclusion reason
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Strategic Education Inc. operates for-profit Capella University and Strayer University. Capella faced a class-action lawsuit alleging it misled doctoral students about time-to-degree, trapping them in extended capstone phases with escalating costs. Capella was included in the Sweet v. Cardona $6 billion DOE borrower defense settlement covering schools with proven misconduct. In 2021, the FTC sent Capella a formal Penalty Offense Notice warning of potential civil penalties for deceptive enrollment practices. A 2024 class action in the Southern District of New York alleges ongoing misrepresentations. Note: the prior narrative attributed a $43.5M FTC order to STRA, but that action was against Career Step LLC, a different company. The exclusion basis should be reviewed against verified evidence.
Research Sources
3 organizations
Related Exclusions
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
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