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For-profit schools closing 4 campuses due to better economy, AG's lawsuit

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Globe University and Minnesota School of Business is consolidating, and as a result it will close four of its Minnesota campuses.

The for-profit schools say a better economy, the growth of online learning, and a three-year "negative publicity campaign orchestrated by the Minnesota Attorney General" prompted this move, according to a news release.

In 2014, Minnesota Attorney General Lori Swanson sued the schools, saying they "exploited" the dream of some students. The lawsuit alleges the schools didn't deliver on the jobs it promised students.

Jeanne Herrmann, the schools' chief operating officer, said in the release that Swanson's lawsuit "impacted our enrollment" and questioned the "validity of the degrees of tens of thousands of our graduates."

The lawsuit went to trial in April, the Star Tribune says. The judge hasn't issued a ruling.

How will things change?

The Minnesota School of Business will be closing its Lakeville, Brooklyn Center, Elk River and Plymouth campuses, the release says.

Students there will be transitioned to other locations in the Twin Cities (the school's Blaine, Richfield, Rochester and St. Cloud campuses will remain open), or online to finish their program.

Students at the Lakeville campus will transition by June 30, with the rest making the switch by the end of the year.

Globe University will continue to offer programs in Woodbury and Minneapolis, however it will consolidate campuses in Wisconsin.

This reorganization means 45 employees will lose their jobs, both at the Minnesota campuses and at the corporate office in Woodbury.

"While we are saddened to lose any of our wonderful employees, we believe these changes are necessary and will help us provide a more robust student experience," Jeff Myhre, CEO of the schools, said in the release.

It's not clear how many students will be affected by this transition.

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