FREEHOLD, N.J. (CN) – Nine students say in a class action that the Medical Technology Institute, in Edison, N.J., made last-minute pitches for extra tuition payments for additional courses before it “abruptly closed the doors” on them last summer.
The nine named plaintiffs estimate that 100 ex-students suffered the same fate. They say the defendants – which include Bright Horizon Institute, of Newark, and three individuals – lured them in with promises they knew they could not keep.
The promises included that the students could take certification exams in their medical-technology specialties, and that they would be placed in “externships” to train for their careers.
None of that was true, the students say.
“The defendants abruptly closed the doors of the Medical Technology Institute located in Edison, New Jersey on July 1, 2010,” according to the complaint in Monmouth County Court. “Prior to the closing of their doors, the defendants made requests of additional tuition fees from the plaintiffs and required plaintiffs to take unnecessary courses in order to extract payment from the plaintiffs before the business closed. …
“Defendants, with full knowledge that their finances were not appropriately handled and with the knowledge that their mismanagement and misappropriation of funds caused the financial demise of Medical Technology Institute, insisted that the defendants pay additional tuition fees and enroll in additional courses.”
Also named as defendants are Rajiv Vaish aka Rajivkumar Vaish, Sanmati Vaish and Kamal Haiyder.
The students seek compensatory, treble and punitive damages for fraud, breach of contract, negligent misrepresentation and detrimental reliance. The complaint does not state how much they paid in tuition, nor what has become of the individual defendants.
The class is represented by James Paone II with Lomurro Davison Eastman & Munoz of Freehold.