Grand Canyon University Received Notice This Week That The U.S. Department Of Veterans Affairs Has Initiated Yet Another Risk-Based Audit Against The School, 8-Months After GCU Successfully Refuted The Agency's Last Audit
Portfolio Pulse from Benzinga Newsdesk
Grand Canyon University (GCU) has been notified of a new risk-based audit by the U.S. Department of Veterans Affairs (VA), following allegations by the Federal Trade Commission (FTC). This is the fifth investigation since GCU sued the Department of Education (DOE) over its nonprofit status. GCU refutes the allegations, citing its strong metrics and lack of student complaints. The university sees this as harassment and an ideological attack by federal agencies. The VA's previous audit's findings were dismissed by GCU, and the Arizona State Approving Agency (SAA) was satisfied with GCU's response. GCU President Brian Mueller criticizes the federal government's overreach and vows to fight the ideological targeting.
January 05, 2024 | 4:06 pm
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Grand Canyon Education, Inc. (LOPE), associated with Grand Canyon University, may face reputational risks and financial burdens due to the new VA audit and ongoing legal disputes with federal agencies.
The repeated audits and legal disputes with federal agencies could negatively impact investor sentiment towards LOPE due to potential reputational damage and the financial costs associated with legal defense and compliance. Although GCU has refuted previous allegations, the ongoing scrutiny suggests a challenging environment that could affect LOPE's stock performance in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80