Lambda School has attracted a lot of attention, and raised some $130 million in venture funding from an impressive list of investors, for its novel approach to coding education: offering six-month virtual computer science courses for $30,000, with the option of paying for the courses in installments based on a sliding scale that only kicks in after you land a job that makes at least $50,000.
But it turns out that the startup is attracting a a lot of controversy, too. In the latest development, three students have filed lawsuits against the company in California, claiming misleading financial and educational practices.
The suits — which are being brought by the non-profit National Student Legal Defense Network on behalf of Linh Nguyen, Heather Nye and Jonathan Stickrod — go back to a period of between 2018 and 2020, and they focus on four basic claims.
10% off annual and 2-year plans
First, that Lambda School falsified and misrepresented job placement rates. Second, that Lambda School misrepresented the true nature of its financial interest in student success (specifically, there are question marks over how Lambda handles its ISA contracts and whether it benefits from those). Third, that it misrepresented and concealed a regulatory dispute in California that required the school to cease operations. And fourth, that it enrolled and provided educational services and signed ISA contracts in violation of that order.
The filings for the three cases are embedded below.
The three students are all currently on the hook for their Lambda tuitions, which they opted to […]
- Even startups on tight budgets can maximize their marketing impact
- Shopify helps customers build online shops, but it’s minting tech founders and investors, too