Stone Academy Agrees to $5 Million Settlement in Lawsuits

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A closed building of Stone Academy in West Haven. After the nursing school abruptly closed on Feb. 15, educational plans of hundreds of students are left in limbo. Attorney General William Tong launched an investigation into potential violations of the Connecticut Unfair Trade Practices Act by the for-profit organization in February.

Stone Academy, a now-defunct private, for-profit nursing school in Connecticut, has reached a $5 million settlement to resolve two student-led lawsuits and a separate case brought by the state, Attorney General William M. Tong announced on Friday.

The settlement, which must be approved by a certified class of Stone Academy students and the courts, includes a ban preventing the school’s owners from operating in Connecticut’s higher education sector for five years. If they seek to reestablish operations, they must notify the attorney general’s office, Tong said.

State regulators have also agreed to withdraw license probes “based solely on a nurse’s attendance” at the shuttered school, according to Tong’s office.

“This settlement is a significant $5 million, with the majority going directly to students for relief, excluding attorneys’ fees,” Tong said during a press conference in Hartford.

The funds are specifically earmarked for student support and will not be directed to Connecticut’s general fund, a decision Tong emphasized, ensuring the settlement focuses solely on helping students rebuild their lives.