As reported by Legal Newsline, the university contends that the lawsuit cannot proceed for reasons including that it alleges fraud based on future events, such as assurance of job placement after graduation, that cannot support a claim.
According to Legal Newsline:
"Ashley Paredes, a 22-year-old mother of three, is seeking class action status for students who enrolled at the university, borrowed tens of thousands of dollars in federal loans and yet found themselves unemployed with allegedly worthless college credits.
"Paredes enrolled at the University of Phoenix after, she claims, she was promised her associate degree would allow her to continue on to earn her bachelor’s and master’s degrees and work as a licensed counselor.
"The lawsuit alleges the recruiters for the college promised prospective students that the credits earned at the school would transfer to comparable programs at schools such as California State University."
The case is currently pending in the United States District Court for the Central District of California.