For-Profit College Lawyer Thinks This Woman Is Using Short-Seller Steve Eisman

Susan Lehr

Earlier today, Steve Eisman was named in a lawsuit against Florida State College and its President and Vice President.Keiser University is a for-profit college that of course hates Eisman’s speeches slamming for-profit universities, his and FrontPoint’s presentation on why investors should short them, and his public shorting of for-profit education.

The university thinks Florida State College is spinning a web of lies about them to bring them down. They want damages and a cease and dismiss order to make FSC stop talking about them.

But because he wasn’t sued, Eisman’s involvement in the lawsuit seemed vague. He’s called a co-conspirator. What’s the worst that could happen to him?

Turns out, nothing.

steve eismanSteve Eisman

Keiser doesn’t think Eisman is the problem. The school’s lawyer thinks he’s just being used. 

“At worst,” James Waldman, the in house general counsel for Keiser, told us, “[FSC’s vice president Lehr, pictured] used him to further her goal.”

He’s not planning on investigating Eisman any further because he’s just a cog in the wheel:

“Lehr and Wallace are spinning a wheel of lies about our school. Eisman is but a cog in that wheel.”

That’s good news for Eisman for two reasons.

One, because he won’t get in any trouble. Waldman says he’s only named so that they can tell the full story, which includes Eisman’s communication with Lehr.

And two, because a for-profit college thinks Steve Eisman and FrontPoint Partners are being used by Florida State College and that’s why he’s shorting them. Laughable. His short is in good hands.

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