DeVry Crashes, Halted Off FTC Action

Shares of

DeVry Education Group IncDV

, a provider of educational services in fields such as business, healthcare and technology, plunged lower by nearly 20 percent and hit a new 52-week low of $19.18 on Wednesday before trading was temporarily halted. Investors were reacting to a report by the Federal Trade Commission (FTC) in which the agency

confirmed it has filed a suit against the operators of DeVry University for alleged misleading advertisements. According to the FTC, DeVry's advertisements "deceived consumers about the likelihood that students would find jobs in their fields of study, and would earn more than those graduating with bachelor's degrees from other colleges or universities." DeVry's advertisements claimed that 90 percent of its graduates landed a job in their field of choice within 6 months. The company also claimed in its advertisements that its graduates' income is 15 percent higher one year after graduation when compared to graduates of other colleges or universities. "Millions of Americans look to higher education for training that will lead to meaningful employment and good pay," said FTC Chairwoman Edith Ramirez. "Educational institutions like DeVry owe prospective students the truth about their graduates' success finding employment in their field of study and the income they can earn."