Putting Education Reform To The Test

Read The Virginia Lawsuit Accusing K12 Of Misleading Investors

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A federal lawsuit could shed more light on how the nation's largest online education company earns its money.

Florida is investigating K12, the nation’s online educator, but we could learn more from a federal lawsuit filed in the company’s home state of Virginia.

The Arkansas Teacher Retirement System filed the lawsuit, which alleges the company misled investors in what K12 did and did not report about how it makes money.

A judge must decide whether the suit can go forward. If it does, K12 could be forced to reveal new information about its operations.

The lawsuit compiles a lot of evidence from confidential witnesses, but also includes the first mention of the emails between company officials and Seminole County teachers StateImpact Florida and the Florida Center for Investigative Reporting reported last week.

Among the allegations, which must be heard in court:

  • The company did not tell investors how much their business depends on “churn,” signing up new students when others drop out. The company also did not reveal that more than half of students at some K12 school did not return the following year.
  • The company listed students as inactive rather than sending them back to their home district. That allowed K12 virtual schools to continue collecting that student’s funding.
  • Some teachers reported having as many as 400 students.

We’ve posted a copy of the complaint with some notes attached to key sections.


  • Question

    Can you identify on which page the emails involving Seminole County are referenced?

    • StateImpactJOC

      The Seminole County emails are referenced on page 30 (page 34 of the PDF). The section is highlighted.

  • CM

    I really need to contact who wrote this. I am a parent in Ohio that has filed multiple complaints, found in my favor, against the school here that is under K12. I now have a direct contact in DC office of special education supporting my issues. Next step is Office of Civil Rights. Please comment with contact I formation. Thanks.

    • StateImpactJOC

      Wrote the lawsuit or wrote the post? The attorneys in the lawsuit are Webster Book LLC and their number is 888-987-9991. You can reach the post author, me, at joconnor AT stateimpact DOT org

  • These scams called charter schools need to be shut down nationwide. I am serious. You want a private school, go to one or create one, but don’t ask taxpayer money to foot the bill while refusing to tell taxpayers how that money is spent. These billionaires who have sucked the lifeblood out of so much of the economy should not be allowed anywhere near institutions designed to provide a public good, education most of all. Nothing is more important than the education of the future generation, and leeches who want to exploit kids for profit are the lowest sort of human beings. It should NOT be allowed.

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