Ex students sue Globe University / MN School of Business

A Minneapolis attorney has filed a consumer fraud lawsuit on behalf of five former and current students who say they were misled by Globe University / Minnesota School of Business.

Clayton Halunen asked the Hennepin County District Court to grant the suit class-action status. The suit seeks to cover students enrolled since September 2007.

In essence, the lawsuit claims the for-profit schools misled students about information such as job-placement rates, starting salaries, program accreditation and the transferability of the schools’ credits.

The suit claims that many students leave the schools with worthless degrees but saddled with student loans.

“The common denominator with all of these students at the end of the day is their inability to get a job when they graduate,” Halunen said. “But they also have another common denominator: substantial student debt.”

Globe spokeswoman Naomi McDonald denied the suit’s accusations.

“Obviously we’re saddened,” she said. “You never want a student to feel wronged. You never want a student to feel disappointed about the education they received at your school.”

The suit describes “an aggressive, boiler-room culture” among recruiters, who “hound” prospective students and mislead them. The system, it says, is designed to “enroll as many students as possible by any means so financial-aid profits flow to its pockets.”

Graduation rates range from 27 percent to 50 percent, it says — and less than that for low-income students — rates the suit calls “abysmal.”

The suit alleges that the company broke state consumer-protection laws, including those prohibiting false advertising, unlawful and deceptive trade practices.

The suit’s plaintiffs are: Melissa Beck of Sioux Falls, S.D. (paralegal program); Sarah Beck of Sioux Falls, S.D. (healthcare management); Cherida Brom of Warrens, Wisc. (veterinary technology) ; Reginald Holmes of Sioux Falls, S.D. (medical assistant); and Alexenderia Romig-Palodichuck of Woodbury (medical assistant).

Romig-Palodichuk continues to take classes at Globe’s Woodbury campus. Brom also attended the Woodbury campus.

McDonald said, “The sentiment of these five students does not reflect the thousands that have success stories, the thousands that we’ve graduated over the decades we’ve been around.”

The suit’s accusations aren’t particularly new.

Halunen represented former Globe dean Heidi Weber in a whistleblower trial in August. The jury ordered Globe to pay Weber about $400,000 for firing her after she reported unethical practices.

Globe’s attorney said he was taking steps toward an appeal.

That same month, Globe settled a similar suit filed by another former dean, Jeanne St. Claire.

  • Guest

    Applaud them for their courage and all the people this class action will help who are financially ruined from loan debt and a worthless degree…all so a private business can get rich off taxpayers.

    • Guest2011

      5 students out of how many? To be fair lets say 10 more are add to it… Really? I would love to find out what type of students these people were. Did they get to class on time? Did they do their homework? How about did they have a positive attitude or were they the type of student who complains about the fact they actually have to do the work to get a degree. I for one am a graduate and am doing very well in my career. It’s not the school it’s the students “Poor me attitude”. The presentation they use discloses everything and they are guided by it to stay ethical and honest I have a friend that works in admissions at one of their campuses and I actually helped her study to memorize the script when she started. I know what they say and how they say it and all of these accusations are completely false. In addition, they actually do tell you that you have to take out loans, how much the interest rates are and that if you drop or withdraw you will owe money. The “woe is me” needs to stop, I personally hope these 5 students don’t get a dirty rotten nickel, they don’t deserve it.

      • U R a D****A**

        I did a B average and I have been told by many people that I am now qualified for the jobs I was suppose to be trained for. I have never had an F or D and I have never been late for anything so you cannot judge. THIS SCHOOL IS HORRIBLE AND DOES NOT DO THE RIGHT TRAINING. This school will not even hire their own students for jobs. Unless you have been to this school you don’t even know! After going to this school, I feel I know less than before starting!

        • Devils Advocate

          I have seen many graduates get jobs there before and after graduation, so not sure about this post’s validity?

      • FormerFaculty

        This is the most pathetic response from an obvious GU/MSB admissions sales minion, that I have ever heard in my life. This should tell you how much they “care” about their students.
        Plus, there are hundreds…but by all means, stick with this garbage where you are actually saying unhappy students are stupid or lazy, which will tick more of them off and make them join the suit. Great thinking, there!

        • Devil’s Advocate

          I have recently received my MBA in Marketing from MSB. I worked my ass off, had two jobs and maintained a 4.0 throughout the program. I have had my own business for over 15 years and every single thing I learned was applicable to my real business and I wish I knew what they taught me when I started my business. I don’t know about other programs that I didn’t take, but this program was really hard, useful as I was learning it, applied to real life and it just got me a great full-time job where I can use what I learned every day at my new job. I closed my declining business and now am better off. So, as far as I’m concerned, the MSB College MBA program is great, hard as hell and very useful! Sorry others didn’t feel the same.

      • Disappointed

        IF more students new of this lots more would join in! I remember and have emails of the things they told me that where not true! I am not unhappy or lazy, I have a worthless degree that has NO jobs available because an associates is worthless in my field, but no they pushed me to do saying I would be guaranteed a great career!! But NO SUCH LUCK! and I reached out to them to help with my job search and they sent me one possibiltiy in NEW YORK.. That I didnt even qualify for!

  • Aaron Seliga

    If the allegations prove to be erroneous I am guessing Mr. Friedrich won’t be reporting them as it doesn’t play into his narrative.

    • afriedrich

      Mr. Seliga:

      I suppose you could look at it in three ways:

      1) I’m a fair reporter, and will report any outcome.
      2) I’m a reporter who doesn’t want to get scooped — or have people point out high-profile news that he has missed.

      3) I’m a reporter who just wants hard news to fill the news hole so he can keep his editor off his back.

      Any way you look at it, I think it’s in my best interest to cover the outcome, be it positive or negative. A “narrative” really does me no good.

      • Guest

        I, for one, would like to take you up on your offer of “fair reporting”. There are plenty of positive stories occurring at this school. How about we hear from these positive situations as well? The students who wrote Wills for Heroes; enabling policeman and firefighters to prepare wills at no cost. The students who created an exercise program for women with breast cancer. The students who helped many Minnesota families save their homes. These are just few and only scratch the surface. You want to be fair, let’s see what buzz stories like these will lead to.

        • afriedrich

          Please understand that my reporting does not concern the question, “Is Globe a good school or a bad school?”

          That’s beyond my scope.

          The question I’ve been reporting on is: “Is Globe engaging in these practices, which many say are unethical?”

          I could cover Globe’s “positive” stories till the end of time, but that would not answer the question about the alleged practices.

          Government, for example, does a lot of good work every day — whether it’s being run by Democrats or Republicans. But that doesn’t stop anyone from raising questions or pointing out alleged bad behavior. It’s a separate issue.

        • Guest

          Nice comment from an employee….again. If it’s so great, why are there so many pissed people or people suing and the school getting exposed on all these fraud and lies?

  • TiredSage

    I do find it interesting that an ambulance chasing lawyer is in the middle of all these cases, pursuing a politically unpopular quarry. I have often wondered why the same enthusiasm isn’t shown for suing our state schools as I can’t believe everybody graduating is getting a job. Nor can I believe the are all satisfied with their education, level of debt or time to degree. That would be the better story, in my opinion.

  • GettaLife

    TiredSage must not realize that he/she is an idiot.
    1. Ambulance chasers is a slang term for attorneys who go after medical malpractice and accident victims. These attorneys are employment, and consumer protection and very respected for their work.
    2. How is a reporter who has reported news, not done his job? Maybe if this school didn’t give him so much to share, it would be just like the state schools…who are not being sued by everybody for everything.
    3. Do you not read all the comments by past students? They all seem to be unhappy, which means there’s probably something to this?
    Please, Mr. Freidrich, ignore babble like this and keep reporting on this story. Several of us are following this.

  • Kevin Lindow

    My wife would join this suit in a heartbeat

  • Bradley Charles Rawlings

    Wish I would of known about this before I enrolled into globe. It’s been nothing but a headache. I haven’t even gotten though one quarter with them without them wanting to get get loans and aid. And when asked when I might get help from the aid and loans I was told both were used to pay off the school for classes and so on. Not to add I was told I had to get a loan or I wouldn’t have enough money to get any classes with them.

    • guest

      get out and go to a community college where you can afford to go through and not be in debt for the rest of your life. if you were deceived, join the lawsuit!!

  • Guest

    I would definitely agree to joining this suit as well. Worthless degree and too much debt. The school is very misleading with debt, job placement, credit transfers and salary to be expected in the area. Unfortunately, I could have had a 4 year degree with the same amount of money spent on tuition there.

  • Tired of MSB B**l Sh*t

    I would like to know if it is possible that others can join in on this lawsuit. I also attended Globe, graduated in 2010 and was just told that unless I have an internship it is almost impossible to get a job with my degree. Their idea of job placement is sending me links to places that are hiring, which I can get from Jobs2Hire. I also applied and interviewed with Globe for a position as a mobile tech, I called the person, left a message and he never returned my call. I sent an Email asking if they hired someone already and was told “Dave has not made a decision” this was 10/10/2013 and I still have not heard from them. If they won’t hire their own students why would anyone else?

    • Crazyone

      Interesting that Globe has hired many of their own graduates, a few I actually know. Maybe your attitude has something to do with the fact that you can’t get a job?

      • wtf do you know

        Crayzone, unless you went to this school you do not know. I went to this school and they would not hire me in a position that they say the hire their students for more training, I graduated with a B+ average.

        • guest

          Why the heck would you want to work there….its a sinking ship. All of their great instructors and staff have either been “down sized” or got away from there.

    • FormerFaculty

      Join the suit! Call them!

  • NeverAgain

    I was thrilled when I heard on NPR that this suit was filed. I filed an Attorney General complaint 2 years ago making the exact same claims. I was looked in the eye and lied to by the recruiter. I was at another school and signed up with MSB for precisely the reason of transferable credits and was specifically and intentionally lied to. My 3 years of wasted time at MSB can never be made up to me and I owe $44000 in student loan money for worthless credits. MSB is essentially a text book sales floor for extremely expensive sophomoric books that go obsolete the very next year. There is no student support unless it’s to get your student loan application filed. I refer to them as the prime example of what is wrong with America. Sure, caveat emptor and all that, but the misrepresentation is plain fraud and they are ruining people’s lives.

    • Guest

      Speak up and get ahold of Halunen and join the suit! Save someone else from going through what you have. You are not alone.

  • Guest

    I would like to join this class action lawsuit. I am currently 50K in debt and have an associate degree from Minnesota school of Business. While my time was a good learning experience at Minnesota School of Business, I was informed that I needed to go to Globe to pursue my Bachelors; As Minnesota school of Business did not offer the criminal Justice degree for bachelors. When attending Globe I was appalled at not only the treatment but also the learning experience. At one point I found myself watching youtube videos for hours on end in class and thought is this what I am paying for? I still do not have a job in my field and also think that I am unable to get one.

    • Dicesucker

      I too have a worthless degree from MSB. I remember one night having to sit through Erin Brockovich and thinking, I cannot believe I am paying a ton of money to watch this horrible movie. I was lied to and I would join a lawsuit without hesitation. oh and by the way, to all the people calling MSB students lazy, I was on the Deans list every quarter.

  • Paragraph 90

    Paragraph 90 says it all for me. I am in that catch 22 as we speak with this school. I have a B average at present time so I would hardly consider myself “lazy”. I’m tens of thousands in debt and growing and have really no alternative other than to get this worthless degree.

  • Devil’s Advocate

    MSB College works with students who may be unable to get into the big schools and their instructors often deal with students who don’t have the same dedication to a degree program an average student would process. There are many great, average college students, but there are also students who are threatening or disrespectful in instructors faces, some have mental illness, traumatic post-war conditions, active criminal conditions like probation, may have active drug addiction or just expect it to be easy to get a degree. Many are great and just need a caring teacher, but some have unrealistic ideas of what should be expected from them, both in school and after graduation, and no college will bring employers to a graduates home, present them as employers and say” Here’s your job!” I’m sure there is inflation and distortions of placement facts from ALL colleges. There’s no way all these colleges are placing students in ideal positions above the 90% level. I know there are some fantastic instructors at MSB’s Creative Programs, who make very little income, but really care about the students, are great teachers and dedicated to helping the unusual range of MSB students. Since many of them were the same way when they were young, they see a kinship with these students and can help them in a way instructors from a big university couldn’t.

    It seems there is always an attorney filing class action suits, that make them a ton of money and a bit for their clients. I would ask if these students were excelling in their programs? Were they hard workers, did the assignments on time and read the books? Did they take initiative or do nothing if they weren’t told what to do specifically? Have they looked hard for work in the proper types of jobs and were willing to start at the bottom at the beginning?

    MSB does have some messed up policies, but the instructors there are awesome and provide one-to-one instruction you can’t get at other big colleges, since in the creative program, class size ranges from 3 to 15 students you get hands-on teaching. Do you think if you took a creative media class at the U of MN that an instructor would have 20 years of real private sector experience, still works in their field, and will sit next to a student and help them learn something new for 15 minutes if they couldn’t get it? I doubt they have the time or would teach that way.

  • Guest 60

    I graduate from Globe Minnesota school of business in 2013 with my bachelors degree in healthcare management. The school was trying to help me find a job they sent me for interview to a job paying $8.75 an hour. The job they sent me for was actually telemarketing That is kind of a slap in the face. I found a job on my own and they want me to give them all the information so they can sit there and say that they help me get this job. if I did this it would make there placement rating go up even higher. They don’t care were you get a job at as long as you get a job it may have nothing to do with your degree. Yet they say that they have such a high placement rating sure it’s jobs that have nothing to do with your degree. Come to find out a lot of my instructors were not even teachers, most of them never even went to college to get their teaching degree.

  • lj

    I wish I would of seen this report before I started MSB for a bachelor’s in accounting. It got to expensive I could afford to stay in. I had some horrid teachers who didn’t care about the students. I needed a teacher to fill out a paper for a scholarship I was applying for he wrote it wasn’t a good school for my degree. I didn’t get the scholarship. I was also told my credits would transfer.

  • Victoria

    I attended and graduated at Minnesota School of Business – Blaine campus on September 26, 2013 with a Medical Assistant Associate Degree. It’s been nearly 10 months and I still cant get hired at any job other than Subway/part-time/minimum wage . I finished my 6 week clinical externship on August 23, 2013 which CANNOT be used as experience in 80% of the 200 applications I’ve turned in. Businesses just wont hire me because I am inexperienced in a medical/clinical setting. The day I enrolled into Minnesota School of Business I was told I would receive job replacement by graduation and that the degree and externship would improve my resume but it hasn’t done a thing. It’s appalling to me that the school would lie to my face. Had I known a degree wouldn’t really improve my resume I wouldn’t have enrolled. If I wasn’t 56,000 in debt I too would get a lawyer and have my loans removed. I shouldn’t have to pay for a degree that has no sentimental value to my life.

  • D.j. Scufsa

    How do I become part of the Lawsuit against Globe University in Woodbury Minnesota. I was in the Criminal Justice Program in 2007.