DeVry's Stock Rallies After FTC Litigation Settled

Shares of DeVry Education Group Inc. jumped 2.6% in midday trade Thursday, after the for-profit education company said the settlement agreement with the Federal Trade Commission will not impact access to federal student loans or student services. DeVry said it will pay $49.4 million to settle the FTC litigation regarding the use of employment statistics in former advertising. The company said it will also forgive $30.4 million of institutional loans issued before Sept. 15, 2015, and forgive outstanding accounts receivable balances by $20.2 million for former students. DeVry said it expects to record a change of $52 million to $55 million in its fiscal second quarter as a result of the settlement. "DeVry Group chose to settle this action after filing an answer denying all allegations of wrongdoing," the company said in a statement. The settlement comes three months after rival ITT Educational Services, the parent of ITT Technical Institutes, filed for bankruptcy in the wake of the Department of Education's decision to ban the for-profit school from enrolling new students using federal financial aid.