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Several students have sued Argosy University, which is an education system of Education Management Corporation (Nasdaq: EDMC) in Dallas County District Court, alleging that the college lied to them in order to get them to enroll in the college. Argosy University is a for-profit college. Plaintiffs were students enrolled in the school's psychology doctoral program at Argosy's Dallas campus. At the time Plaintiffs were considering enrolling in the program, school officials told them that the program was in the process of obtaining crucial accreditation by the American Psychological Association and that the program would become accredited before the students graduated. As a result of these reassurances plaintiffs enrolled in the program at significant personal expense.

The lawsuit alleges that during the students' enrollment in the program the school indicated on numerous occasions that the school was actively pursuing APA accreditation. In reality, the school had not begun to secure accreditation, and the students ultimately graduated from the program without the program ever obtaining APA accreditation. Julie Johnson, plaintiffs' attorney, explains, what sets this case apart are the blatant and repeated lies told by school officials: "When students expressed skepticism about the school's progress toward APA accreditation, the school dismissed these concerns as baseless 'rumors' and perpetuated the sham that it was in the process of pursuing APA accreditation."

The school's repeated lies, claim the plaintiffs, have significantly hindered their ability to repay the exorbitant student loan debt they assumed in order to attend the college. Johnson explains, "even though the state of Texas does not require a degree from an APA-accredited college for individuals to practice as clinical psychologists, the reality is that in this competitive job market, most employers require APA accreditation. Those that are willing to employ clinical psychologists that have graduated from non-APA accredited institutions pay them significantly less than they would pay a clinical psychologist that did graduate from an APA-accredited institution." This, plaintiffs claim, has left them saddled with unserviceable student loan debt and dashed dreams.