SupercitedVerified Matter
California Culinary Academy Student Fraud Class Settlement Gallo
$40 million class settlement fund plus approximately $1.8 million in debt cancellation for former California Culinary Academy students.
Former California Culinary Academy students brought a class action alleging that the school and its parent, Career Education Corporation, misrepresented job-placement rates, expected earnings, admissions selectivity, the value and reputation of the education, and graduates’ career prospects, inducing students to incur substantial tuition and student-loan debt. The case asserted fraud and California consumer-protection claims and ultimately resolved through a class settlement.
Result
- Outcome
- Settlement
- Value
- $40,000,000 settlement fund + approximately $1,800,000 debt cancellation
- Short result
- $40 million class settlement fund plus approximately $1.8 million in debt cancellation for former California Culinary Academy students.
- Remedy
- Monetary Relief; Debt Forgiveness; Injunctive Relief
- Year
- 2012
- Published
- 2026-09-03
- Updated
- 2026-10-21
Supporting sources
- Career Education Corp. SEC filing · Government record
- San Francisco Superior Court Settlement Notice PDF · Firm-confirmed information
- Culinary school grads claim they were ripped off · News / public announcement
- substantial contemporaneous legal-industry coverage describing the $40M settlement and Ray Gallo as lead counsel. · Court filing
- Amador docket / Ray Gallo filing · Court filing
- California Business & Professions Code § 17200 et seq · Statute / rule
- California Civil Code § 1750 et seq. · Statute / rule
- California Consumer Remedies Act · Section 1770 · Statute / rule
- California Code, Code of Civil Procedure · CCP § 382 · Statute / rule