Liz Swain 4:24 p.m., May 24
State investigating Bridgepoint
It's part of probe of for-profit educational institutions
Troubled Bridgepoint Education filed a report with the Securities and Exchange Commission this morning (Jan. 14) indicating that it has received an investigative subpoena from the California Attorney General requesting documents from March 1, 2009 to the present. Bridgepoint says it is evaluating the subpoena and intends to comply with the AG's request. The stock is down only a penny to $10.10 this morning. Bridgepoint stock has been belted since the summer of 2012, when the Western Association of Schools and Colleges denied its major operation, Ashford University, accreditation. In short order, the Higher Learning Commission, from which Ashford now has accreditation, demanded that the school prove it can meet accreditation requirements. Bridgepoint gets almost all its funds from the United States government; lack of accreditation could effectively put it out of business. Stocks of other for-profit universities, such as the biggest one, Apollo, parent of University of Phoenix, have also been hit as accreditation and government investigative problems mount.