Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 111

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1
Chunk 111
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 and that shareholder ceases to own at
least 25% of such stock or ceases to be the largest shareholder. These standards are subject to interpretation by ED.

66

Moreover,
the potential adverse effects of a change of control could influence future decisions by us and our stockholders regarding the sale,
purchase, transfer, issuance or redemption of our stock. In addition, the adverse regulatory effect of a change of control also could
discourage bids for shares of our common stock and could have an adverse effect on the market price of our shares.

Our
failure to comply with laws and regulations regarding prohibited misrepresentation could result in sanctions, liabilities or litigation
that could have an adverse effect on our business and results of operations.

ED’s
regulations prohibit an institution that participates in the Title IV Programs from engaging in misrepresentations regarding the nature
of its educational programs, financial charges, graduate employability or its relationship with ED. A “misrepresentation”
includes any false, erroneous, or misleading statement (whether made in writing, visually, orally, or through other means) that is made
by an eligible institution, by one of its representatives, or by a third party that provides to the institution educational programs,
marketing, advertising, recruiting, or admissions services and that is made to a student, prospective student, any member of the public,
an accrediting or state agency, or to ED. If ED determines that one of our institutions has engaged in “substantial misrepresentation,”
ED may impose sanctions or other conditions upon the institution including, but not limited to, initiating an action to fine the institution
or limit, suspend, or terminate its eligibility to participate in the Title IV Programs and may seek to discharge students’ loans
and impose liabilities upon the institution. ED defines a “substantial misrepresentation” to include any misrepresentation
on which the person to whom it was made could reasonably be expected to rely, or has reasonably relied, to that person’s detriment.
The definition of “substantial misrepresentation” is broad and, therefore, it is possible that a statement made by the institution
or one of its service providers or representatives could be construed by ED to constitute a substantial misrepresentation. Other federal
agencies, state agencies, and accrediting agencies have similar rules that prohibit certain types of misrepresentations or unfair marketing
and advertising practices by us or others on our behalf on a variety of subjects including, without limitation, the accuracy and substantiation
of rates of graduation, job placement, and passage of occupational licens