Company: LGCY
Filing Date: 2025-09-25
Form Type: 10-K
Source: 0001493152-25-014945
Chunk: 392

Company: Legacy Education Inc.
Filing Date: 2025-09-25
Form: 10-K
Item: Item 1A
Chunk 392
---
 Program
funds before receiving such funds from ED. It could also impose letters of credit, restrict participation, or take actions such as suspensions
or emergency actions. 

Significant
violations of Title IV Program requirements by us or any of our institutions could be the basis for ED to limit, suspend, terminate,
revoke, or decline to renew the participation of the affected institution in the Title IV Programs or to seek civil or criminal penalties.
We and our institutions are also subject to claims and lawsuits relating to regulatory compliance brought not only by federal and state
regulatory agencies and our accrediting bodies, but also by third parties, such as present or former students or employees and other
members of the public.

If
the result of any pending or future proceeding, lawsuit, audit, review, or investigation is unfavorable to us, we may be required to
pay money damages or be subject to fines, limitations, conditions, loss of Title IV Program funding and eligibility for other financial
assistance programs, loss of accreditation or state authorization, injunctions or other penalties which could impact our results of operations.
Even if we adequately address issues raised by an agency review or successfully defend a lawsuit or claim, we may have to divert significant
financial and management resources from our ongoing business operations to address issues raised by those actions. Claims and lawsuits
brought against us may damage our reputation or adversely affect our stock price, even if such actions are eventually determined to be
without merit.

The
failure of any of our institutions to detect and prevent financial aid fraud could result in liabilities, loss of accreditation or Title
IV eligibility, or third-party claims.

Institutions
must detect and prevent financial aid fraud attempts. For example, ED requires institutions to maintain systems to identify conflicting
information that affects a student’s eligibility for financial aid and resolve it before disbursing aid. ED also requires institutions
to report suspicions of fraud to the ED’s Office of the Inspector General. If our efforts to detect and prevent financial aid fraud
are unsuccessful or found to be deficient, it could lead to a finding of noncompliance with Title IV requirements, accreditation standards,
or other agencies, and could result in liabilities, loss of accreditation or Title IV eligibility, as well as third-party claims.

Risks
Related to Our Business

If
we fail to comply with the rules under Sarbanes-Oxley related to accounting controls and procedures in the future, or, if we discover
material weaknesses and other deficiencies in our internal control and accounting procedures