Casa Loma College Lawsuits, Settlements, and Accusations

Casa Loma College has faced several notable legal and regulatory matters over the past 15 years. The Casa Loma College lawsuits and enforcement actions on record include a wrongful termination suit alleging falsified student records, a $450,000 labor law settlement under California’s Private Attorneys General Act, a state regulatory accusation that was later withdrawn, an accreditation withdrawal that closed one of its campuses, and a small claims case the college won.

The PAGA Labor Lawsuit and $450,000 Settlement

In January 2024, former employee Maurilia Llamas Rivera sued Casa Loma College under California’s Private Attorneys General Act. The case, filed as 24STCV00501 by the Bibiyan Law Group, allowed Rivera to pursue labor code violations on behalf of the state and other affected workers.¹

Available records do not spell out the specific violations alleged, but the case covered 67 aggrieved employees out of 93 total listed, spanning 1,645 pay periods and 7,568 work weeks during the class period.¹

The case settled in May 2026 for a gross amount of $450,000. Attorney fees took $150,000, litigation expenses $30,000, and settlement administration $6,550. Rivera received a $7,500 plaintiff award. PAGA penalties totaled $45,000, with an individual PAGA payment of $11,250.¹

Wrongful Termination Suit Alleging Falsified Student Records

The most serious allegations on record came from Billy So, a former director of registrars at the college’s Van Nuys campus. So filed a wrongful termination and defamation lawsuit in February 2012, claiming he had been fired in November 2011 for refusing to participate in falsifying student records.²

According to the suit, So began seeing “inaccuracies and errors in academic record keeping” as early as 2008, including what he described as intentional fabrication and alteration of records to justify federal funding requirements. He alleged that in January 2010 a manager instructed him by email to falsify student attendance and participation documents, and that when he refused, an assistant registrar used his password to enter the false data. So also claimed that transcripts contained erroneous GPA calculations and that diplomas were issued to students who had not completed required coursework.²

The suit named Vicki Kim, the college’s executive director of registrars, as a co-defendant. So alleged that Kim began reassigning his duties to other employees in May 2011 and sent emails to colleagues falsely characterizing him as “grumpy or bored” and “dozing off and yawning during the day” to build a pretext for firing him. He sought unspecified compensatory and punitive damages.² Available records do not reflect the final outcome of the case.

State Regulatory Accusation by the BPPE

Following an unannounced compliance inspection on October 27, 2015, the California Bureau for Private Postsecondary Education filed a formal accusation against Casa Loma College. Case No. 1001120 alleged four categories of violations.³

As of February 2016, according to the Bureau, the college failed to maintain the required ratio of current assets to current liabilities, showing a deficit of $476,380 and lacking resources to cover 30 days of operating expenses. The Bureau also alleged that the college failed to retain supporting documentation for data in its 2013–2014 Annual Report and School Performance Fact Sheets for the required five-year period, and failed to produce backup records after requests in October 2015, November 2015, and February 2016. Finally, the Bureau alleged that the college’s website described itself as “approved” by the Bureau without including the legally required disclaimer explaining what that approval means.³

The Bureau sought revocation or suspension of the college’s approval to operate along with an order requiring the college to pay investigation and enforcement costs. The accusation was ultimately withdrawn without prejudice, meaning the Bureau dropped the case but kept the right to refile. The withdrawal document stated it was made “in the interest of justice.”⁴

Anaheim Campus Accreditation Withdrawal

The college also lost accreditation for its Anaheim, California campus through action by its institutional accreditor, the Accrediting Bureau of Health Education Schools. In February 2017, the ABHES Commission voted to withdraw the Anaheim campus’s inclusion in the college’s grant of accreditation. Casa Loma College appealed, but an ABHES Appeal Panel affirmed the decision in May 2017, and the withdrawal became final on June 2, 2017.⁵

The panel found that common areas such as lobbies and restrooms did not adequately support instruction or meet standards for safety and cleanliness. The campus lacked a documented emergency preparedness plan. Records were not stored in a manner safe from risk of loss, such as fire-resistant cabinets or digital backups. The panel also found that the campus failed to demonstrate sufficient resources and equipment to meet educational goals, with specific deficiencies in the Diagnostic Medical Sonography laboratory.⁵

Casa Loma College publicly disagreed with the findings, characterizing some as based on “personal preference” rather than documented standards. The college specifically contested a claim about a missing MRI machine, calling it a “completely fabricated issue.” The withdrawal forced the closure of the Anaheim campus, and 87 affected students were required to commute to the Van Nuys campus to finish their programs.⁵

A Small Claims Case the College Won

A smaller matter involved Muhanad Azzu, who filed a small claims case against Casa Loma College in January 2010 at the Los Angeles County Superior Court’s Van Nuys Courthouse East. The case went to a contested hearing before Judge Semion Beker, who ruled on March 29, 2010, that the college did not owe the plaintiff any money.⁶

Where Things Stand Now

Despite this legal and regulatory history, Casa Loma College remains an active institution. It is a 501(c)(3) nonprofit with campuses in Sherman Oaks, California; Nashville, Tennessee; and Aurora, Colorado, and it continues to hold ABHES accreditation and BPPE approval, along with authorization from the U.S. Department of Education for Title IV financial aid and from the U.S. Department of Veterans Affairs for veterans’ education benefits.⁷⁸

1
CABIA. Maurilia Llamas Rivera v. Casa Loma College
2
Daily News. Former Administrator of Van Nuys Nursing School Sues Former Employer for Wrongful Termination, Defamation
3
California BPPE. Accusation Against Casa Loma College
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California BPPE. Withdrawal of Accusation Against Casa Loma College
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ABHES. Casa Loma College Notice to ED
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UniCourt. Azzu, Muhanad vs. Casa Loma College
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Casa Loma College. Casa Loma College Homepage
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Casa Loma College. Accreditation