Idaho AG drops ‘transparency' lawsuit over University of Phoenix deal
Idaho Attorney General Raúl Labrador dismissed his lawsuit against the Idaho State Board of Education after it ratified an end to the proposed deal between the University of Idaho and the University of Phoenix.
Labrador sued the State Board in June 2023 over the way the controversial transaction came about. He accused the State Board of violating Idaho's open meetings law when it negotiated the U of I's planned purchase of the online, for-profit school in private.
He said in a news release Wednesday that the legal battle was about government transparency. Both parties agreed to cover their own litigation costs.
'This case was never about the merits of any particular transaction, but about ensuring government remains open and transparent for all Idahoans,' Labrador said. 'Idaho's Open Meeting Law requires government entities to conduct state business in public meetings with proper notice, ensuring transparency when taxpayer resources and state institutions are involved. The law reflects the principle that government accountability depends on public access to decision-making processes, particularly for transactions of significant scope and financial impact.'
The universities called the proposed $550 million acquisition quits on June 3 after two years of negotiations.
The deal was plagued by ridicule and legal challenges from the start. In December, the Idaho Supreme Court returned a 4-1 victory in Labrador's favor, overturning a lower court ruling that would have OK'd the secret government negotiations, according to the release.
The acquisition would have had Four Three Education, a nonprofit created by the U of I, buy Phoenix from its hedge fund owner, Apollo Global Management.
The U of I spent over $17 million trying to complete the deal, according to Jodi Walker, a spokesperson for the university. By terminating it, Phoenix is expected to fully reimburse the U of I for out-of-pocket expenses it incurred while pursuing the sale.
University of Idaho, University of Phoenix call off $550M acquisition
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