Steve Eisman’s big short on for-profit universities must be working.
A for-profit university in Florida is now suing him naming him a co-conspirator for his involvement in a “campaign of misinformation” against for-profit universities.
Update: Eisman is not getting sued, he’s just named a co-conspirator. When we asked the lawfirm’s spokesman (who called to correct us) what that meant, she said she’d get back to us. We’ll update when we she does. Here’s the update.
Here are the details on the lawsuit we have so far, from Barron’s.
[Last month tt was] filed in Florida by Keiser University, a privately held for-profit education institution, claiming a conspiracy by Florida State College, two of its administrators, and several “short-sellers”, alleging that Florida State sought to “derail” the for-profit education companies through a campaign of mis-information.
Eisman of course is one of the short-sellers.
Luckily for him, he isn’t at the centre of the lawsuit this and the only reason he seems to be involved in all of this to begin with seems to be just because of an email he didn’t even send.
Of course we haven’t seen the lawsuit, so we don’t know for sure, but Eisman’s only connection to it seems to be this email, that Susan Lehr, the Florida State College at Jacksonville’s vice president of government relations, wrote to him, after he gave a “vitriolic speech” against for-profit education during a Senate hearing in May.
“I cannot thank you enough for speaking out on the for-profit higher ed industry.”
“I read your speech and could just leap with joy!”
But because Lehr was in contact with Eisman, and Lehr and her colleague, the President of the FSCJ, Steven Wallace are the big dogs Keiser is going after, now his involvement is being questioned, too.
The other short-sellers named are Gilchrist Berg, founder of Jacksonville, Florida-based hedge fund Water Street Capital; analyst Antal Desai with Dallas-based investment advisors CPMG, and others.
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