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Settlement Reached in Mountain State Lawsuits

Mountain State University

  The University of Charleston says it has reached a tentative settlement of lawsuits filed by former Mountain State University students against the now-defunct Beckley school.

The proposed settlement announced Wednesday would resolve hundreds of lawsuits and set up a compensation fund for former Mountain State students.

That fund would include $8.5 million from Mountain State's insurance carrier, money from the U.S. Department of Education and from expected income from the liquidation of Mountain State's remaining assets.

The students sued after Mountain State closed because it lost its accreditation. The lawsuits alleged school officials were deceptive about the problems the school was facing.

UC took over Mountain State's campuses in Beckley and Martinsburg so students could complete their degrees but will move out of facilities owned by Mountain State.

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