Can this legal maneuver save Charleston School of Law?
Lawyers in Charleston, South Carolina, are reportedly working on a plan to save the embattled Charleston School of Law.
The plan is for lawyers representing the classes of 2016 and 2017 to petition for a receivership with the aim of settling debts and keeping the school open, according to an opinion column in the Post and Courier.
The students would have standing because they are creditors who have invested tuition money in the school, much of it financed by student loans. Another creditor is InfiLaw, which invested $6 million and provided management services during its now abandoned quest to buy the law school.
A foundation of unpaid benefactors would generate funds for the school to stay open. Each of the school’s five founders, who have already received millions in profits and loans, would be asked to contribute at least $1 million.
The law school has said it is considering whether to admit new students in the fall amid concerns about its ability to remain open.