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Class action aimed at Va. college settled for $5m

Friday - 7/26/2013, 2:58pm  ET

Associated Press

RICHMOND, Va. (AP) -- A federal judge has approved a $5 million class action settlement between a two-year college in the Richmond area and thousands of primarily African-American students it targeted and helped saddle with big school loans.

The settlement involves the former Richmond School of Health and Technology, which is now operating as Chester Career College. The for-profit school offers classes leading to careers in nursing, massage therapy and other medical-related fields.

U.S. District Judge John A. Gibney entered a final order Thursday requiring the school to establish the fund and to reimburse more than 4,000 students and for attorneys' fees.

An attorney representing the college did not immediate respond to a request from The Associated Press for comment. An official of the school who refused to give her name declined comment.

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