Saint Augustine University in Raleigh, North Carolina, has been hit with three lawsuits in addition to its ongoing accreditation issues. The lawsuits have accumulated over the last few months, totaling more than $18 million.
The university has been experiencing financial issues for quite some time, causing them to lose their accreditation. All three lawsuits with three different companies are tied to agreement issues. The first lawsuit comes from Avaria, an IT company bound by a 2020 contract. The next lawsuit is from SBA Connect; a wireless company claimed within a year of their agreement the university had fallen behind on its commitment. The last lawsuit comes from United Healthcare Student Resources, stating that the university breached a contract.
After failing to meet a number of the accrediting agency’s requirements, Saint Augustine’s has been placed on probation for two years. An appeal committee decided to revoke the university’s accreditation in December 2023. In July, an appeal led to its reinstatement. The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) denied the university’s appeal in March. In order to guarantee that all students graduating through May 2025 will receive degrees from an accredited university, Saint Augustine’s declared it would undertake a 90-day arbitration process.
Last year, the institution declared that it would appeal the first ruling of SACSCOC. In that decision, the SACSCOC Board of Trustees decided to eliminate Saint Augustine’s University “from membership for failure to comply with Core Requirement 4.1 (Governing board characteristics), Core Requirement 13.1 (Financial resources), Core Requirement 13.2 (Financial documents), Standard 13.3 (Financial responsibility), Standard 13.4 (Control of finances), Standard 13.5 (Control of sponsored research/external funds), and Standard 13.6 (Federal and state responsibilities) of the Principles of Accreditation.”
In the midst of their ongoing financial struggles, 50 Plus 1 Sports, a Black-owned development company, invested $70 million to help save Saint Augustine’s. The ground lease arrangement between Saint Augustine’s and 50 Plus 1 Sports will enable 50 Plus 1 Sports to expand on the campus. Because the ground leasing payment was made in advance by 50 Plus 1 Sports, the institution was able to pay off its $32 million debt. The revenue distribution between the two will be 65/35 for the first ten years, then 60/40 after that.
Saint Augustine’s has yet to comment on the pending lawsuits.
