ITT Educational Services (NYSE: ESI) disclosed the following on Thursday:
Item 7.01. - Regulation FD Disclosure.
On April 20, 2016, ITT Educational Services, Inc. (the “Company”) received a letter from the Accrediting Council for Independent Colleges and Schools (“ACICS”) informing the Company that the nature of certain adverse information since 2014 regarding certain financial and regulatory matters confronting the Company and its ITT Technical Institutes (the “Institutions”), including the Company being placed on Heightened Cash Monitoring I, investigations by certain state Attorneys General, pending litigation with the Consumer Financial Protection Bureau and the Securities and Exchange Commission, and the Company’s responses to ACICS requests for information, including those involving unsubstantiated allegations, call into question the Institutions’ administrative capacity, organizational integrity, financial viability and ability to serve students in a manner that complies with ACICS standards. The ACICS directed the Institutions to show cause at the next ACICS meeting why its current grants of accreditation should not be withdrawn by suspension or otherwise conditioned. The letter also requires the Company to submit certain information and plans to ACICS prior to the next ACICS meeting.
To date, the Company has provided many regulatory bodies with hundreds of thousands of records to review and the Company will willingly comply with the ACICS request for additional information. The Company strongly believes that the facts it provides in response to ACICS’s request will continue to demonstrate the Company’s and Institutions’ compliance with regulatory and accreditation criteria. The Company is confident that it has and will continue to meet the ACICS accreditation standards