Justice for Nursing Students: $5M Settlement for Stone Academy's Abrupt Closure

A $5 million preliminary settlement has been announced between Stone Academy, its owners, and the state of Connecticut to resolve claims filed by the state and former students. This settlement comes nearly two years after Stone Academy, a for-profit nursing school, abruptly closed all three of its campuses in February 2023.

Preliminary Approval and Settlement Details

Connecticut Attorney General William Tong's office accused the school's owners of misappropriating millions of dollars and failing to fulfill promises made to students. The settlement, preliminarily approved by a judge, includes the following key points:

• The state will retain $150,000 to help Stone Academy students prepare for exit exams.
• Compensation for individual students will be determined through a private class-action process, subject to court approval.
• Measures to assist affected students in completing their education and professional exams, including remedial programs.
• Potential for students to complete studies through the Griffin Hospital School of Allied Health Careers.
• The Connecticut Department of Public Health will cease licensure investigations based solely on a nurse's attendance at Stone Academy.
• The school's owner, Joseph Bierbaum, will be barred from employment in higher education in Connecticut for five years.

The final hearing for this settlement is scheduled for February 26, 2025 and aims to resolve all claims filed by both the state and students against Stone Academy.

Background on the Investigation and Legal Action

In February 2023, Stone Academy, a private nursing school in Connecticut, abruptly closed, leaving nearly 1,000 students in limbo. The state filed a lawsuit against the school, alleging misrepresentation of exam passage rates, unqualified faculty, and inadequate clinical training, while students filed a class action lawsuit seeking compensation and accountability. 

The $5 million settlement, announced on January 10, 2025, is the culmination of an extensive investigation and subsequent legal action initiated by the Connecticut Attorney General's office against Stone Academy and its owners. 

Connecticut AG Tong said of the settlement, “These students [were] mostly women, many immigrants, many people of color — women who had other jobs, who were trying to fit in nursing and practical education, who were trying to put food on the table and work other jobs and care for their families, just to get a chance to change the trajectory of their lives. [This settlement is the] best and quickest and most complete way to provide relief to students.”

The legal proceedings against Stone Academy reflect a broader trend of increased scrutiny on for-profit educational institutions, particularly vocational programs in the healthcare sector where certification and accreditation are crucial for employment. As the nursing shortage continues to be a concern across the United States, ensuring the quality and integrity of nursing education programs becomes even more critical.

As part of the settlement proceedings, former Stone Academy students can expect to receive notices detailing the compensation process.