CLASS-ACTION STATUS REFUSED IN SUIT AGAINST IVY RIDGE

BRIAN KELLY

Watertown Daily Times

A federal judge has denied class-action status for former Academy at Ivy Ridge students and their parents who filed a $100 million lawsuit against the school claiming that its diplomas were worthless.

The ruling, filed Wednesday in U.S. District Court, Albany, by Senior Judge Thomas J. McAvoy does provide the families with the opportunity to renew their motion for class certification pending the results of a hearing on the matter.

In addition to the Academy at Ivy Ridge and its corporate entities, the suit names, among others, Robert B. Lichfield, who owns the former Mater Dei College property where Ivy Ridge is located, World Wide Association of Specialty Programs and Schools (WWASPS), a Utah-based company founded by Mr. Lichfield that includes Ivy Ridge among its affiliates, and several companies that helped market Ivy Ridge.

The parents claim, among other things, that when people contacted the marketing firms for information about boarding or military schools, the inquirers were discouraged from considering schools that were not affiliated with WWASPS and instead were steered toward one of its affiliates, including Ivy Ridge.

The parents claim they were assured by marketers that Ivy Ridge was a "fully accredited" high school even though it was not authorized to grant diplomas or course credits because it had neither applied for nor received a certificate of high school registration from the state Board of Regents. The parents further contend that, due to the lack of certification, none of the "diplomas" or "credits" issued by Ivy Ridge was recognized by the state.

An investigation by the state attorney general's office in 2005 led to the school paying fines and penalties of about $250,000, as well as returning 15 percent of total tuition costs to students who received the fake diplomas or who withdrew from the school upon learning of the accreditation problems.

Eric C. Nordby, Syracuse, who is shown in court documents as the lead attorney for the families, could not be reached Thursday for comment on the class certification ruling.

In addition to denying the motion for class certification, Judge McAvoy also dismissed federal Racketeer Influenced and Corrupt Organizations Acts claims brought by or on behalf of the students based on tuition the parents paid. A significant portion of the RICO claims made by the parents also was dismissed, although several claims remain against Ivy Ridge and its corporate entities.

The bulk of the claims against Ivy Ridge and its entities, including claims of unjust enrichment, negligent misrepresentation, deceptive business practices, breach of contract and fraud, were allowed to continue.