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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.

Griffin Hospital School of Allied Health Careers has agreed to accept Stone Academy students who did not receive their degrees, according to the attorney general’s office.

"We are fortunate to have eight named plaintiffs who led the class and worked to ensure the most impactful relief for all members," said David A. Slossberg, a Hurwitz Sagarin Slossberg & Knuff LLC attorney who led the case for the students.

"Through tough negotiations with private defendants and the AG's office, our clients secured a settlement that includes both monetary and non-monetary elements—an established fund for student recovery and additional services to help them complete their education," Slossberg added. "This settlement aims to provide a sense of closure and ensure as much relief as possible, during a time when it truly matters."

Attorneys representing Stone Academy and its leaders declined to comment on the settlement, which appeared to still be in the early stages according to public court records.

The global settlement aims to resolve three separate lawsuits related to Stone Academy’s abrupt closure in February 2023.

The initial lawsuit, filed publicly by eight students in Waterbury state court on May 3, 2023, alleged violations of the Connecticut Unfair Trade Practices Act by the school, its owners, and CEO Gary Evans. The complaint accused the school of enrolling students shortly before its closure, misleading students about its viability, and disregarding state regulators’ warnings about substandard programs.

In a separate suit filed on July 13, 2023, the state accused Stone Academy and one of its owners, Joseph Bierbaum, of multiple CUTPA violations. That case was later consolidated in Waterbury.

The students had initially sought a $20 million prejudgment remedy, which the state mirrored with a similar $10 million placeholder for potential settlement or court awards.

On December 26, 2023, the students filed a federal lawsuit against Connecticut's higher education and health commissioners, alleging violations of due process by retroactively invalidating earned credits and refusing to license graduates.

Attorney General Tong made the announcement after a brief filing in the students’ lawsuit against Stone Academy late Thursday, seeking approval for a preliminary settlement. The settlement was signed by attorneys for the students, Bierbaum, and the school, but not by the state.

Connecticut Superior Court Judge W. Glen Pierson has scheduled a hearing for January 16 in Waterbury to consider preliminary approval of the settlement, with a final approval hearing set for February 24.

Settlement notices had not yet been filed in the state’s lawsuit or the students' federal lawsuit against state commissioners.

The students are represented by David A. Slossberg, Erica O. Nolan, and Timothy C. Cowan of Hurwitz Sagarin Slossberg & Knuff LLC.

Stone Academy is represented by James J. Healy of Cowdery Murphy & Healy LLC and Peregrine Z. Rowthorn of Rowthorn Law LLC.

Joseph Bierbaum is represented by Craig A. Raabe and Seth R. Klein of Izard Kindall & Raabe LLP.

The state is represented by Joseph E. Gasser, Katherine Hagmann-Borenstein, and Addison Keilty of the Office of the Connecticut Attorney General.

The students' state court case is Terencia Ridenhour et al. v. Career Training Specialists LLC dba Stone Academy et al., case number UWY-CV23-6070643-S, on the complex litigation docket of the Connecticut Superior Court at Waterbury.

The students' federal case is Ridenhour et al. v. Larson et al., case number 3:23-cv-01672, in the U.S. District Court for the District of Connecticut.

The state's case is State of Connecticut v. Career Training Specialists LLC dba Stone Academy et al., case number UWY-CV23-6072103-S, on the Complex Litigation Docket of the Waterbury Judicial District of the Connecticut Superior Court.