Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 1 of 22 PageID: 1 

UNITED STATES DISTRICT COURT 

DISTRICT OF NEW JERSEY 

FEDERAL TRADE COMMISSION, Case No. ____________ 2:23-cv-21250

Plaintiff, COMPLAINT FOR PERMANENT 

INJUNCTION, MONETARY 

v. RELIEF, AND OTHER RELIEF 

SOLLERS, INC., a corporation, and 

SOLLERS EDUCATION, LLC, a limited liability 

company, also d/b/a Sollers College, 

Defendants. 

Plaintiff, the Federal Trade Commission (“FTC” or “Commission”), for its Complaint 

alleges: 

1. The FTC brings this action under Sections 5(a), 13(b), and 19 of the Federal 

Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a), 53(b), 57b, and the Trade Regulation 

Rule Concerning Preservation of Consumers’ Claims and Defenses (“Holder Rule”), 16 C.F.R. 

Part 433, which authorize the FTC to seek, and the Court to order, permanent injunctive relief, 

monetary relief, and other relief for Defendants’ acts or practices in violation of Section 5(a) of 

the FTC Act, 15 U.S.C. § 45(a), and in violation of the Holder Rule in connection with their 

deceptive marketing and sale of educational services. 

1 
 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 2 of 22 PageID: 2 

SUMMARY OF CASE 

2. Defendants operate Sollers College, a for-profit school in New Jersey, primarily 

focused on short-term certificate programs in the fields of information technology and life 

sciences. 

3. Since at least 2018, Defendants have used false or unsubstantiated representations 

to convince consumers to enroll at Sollers College. Specifically, Defendants lure consumers 

with inflated job placement rates and by falsely representing that their relationships with 

prominent employers create jobs for their graduates. 

4. Defendants also have encouraged students to pay for their education using income 

share agreements (“ISAs”). ISAs are a financing option where students cover the cost of 

attendance by agreeing to pay the school a share of their future income. 

5. Defendants’ ISAs are unlawful because they omit legally mandated disclosures 

that contain key consumer protections. 

JURISDICTION AND VENUE 

6. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

and 1345. 

7. Venue is proper in this District under 28 U.S.C. § 1391(b)(1), (b)(2), (c)(1), and 

(c)(2), and 15 U.S.C. § 53(b). 

PLAINTIFF 

8. The FTC is an independent agency of the United States Government created by 

the FTC Act, which authorizes the FTC to commence this district court civil action by its own 

attorneys. 15 U.S.C. §§ 41–58. The FTC enforces Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. 

2 
 

 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 3 of 22 PageID: 3 

The FTC also enforces the Holder Rule, 16 C.F.R. Part 433, which protects consumers in 

connection with credit contracts. 

DEFENDANTS 

9. Defendant Sollers, Inc. is a New Jersey corporation with its principal place of 

business at the Menlo Park Office Building, located at 100 Menlo Park, Ste. 550, Edison, New 

Jersey, 08837. At times relevant to this Complaint, it has also used 55 Parsonage Road, Unit 

1850, Edison, New Jersey 08837, the address for the Menlo Park Mall located adjacent to the 

Menlo Park Office Building, and 33 Wills Way, Building 9, Piscataway, New Jersey 08854 to 

transact business. At all times relevant to this Complaint, Sollers, Inc. transacts or has transacted 

business in this District and throughout the United States. 

10. Defendant Sollers Education, LLC, also doing business as Sollers College, 

(hereinafter, “Sollers College”) is a New Jersey limited liability company with its principal place 

of business at 33 Wills Way, Building 9, Piscataway, New Jersey 08854. At times relevant to 

this Complaint, it has also used the Menlo Park Office Building and the Menlo Park Mall, 

located at 100 Menlo Park, Ste. 550, Edison New Jersey, 08837 and 55 Parsonage Road, Unit 

1850, Edison, New Jersey 08837 respectively, to transact business. Sollers College is a wholly 

owned subsidiary of Sollers, Inc. At all times relevant to this Complaint, Sollers College 

transacts or has transacted business in this District and throughout the United States. At all times 

relevant to this Complaint, acting alone or in concert with others, Sollers College has advertised, 

marketed, distributed, or sold educational services to consumers throughout the United States. 

3 
 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 4 of 22 PageID: 4 

COMMON ENTERPRISE 

11. Defendants Sollers, Inc. and Sollers College (collectively, “Sollers”) have 

operated as a common enterprise while engaging in the deceptive acts and practices and other 

violations of law alleged below. Sollers has conducted the business practices described below 

through interrelated companies that have common ownership, officers, office locations and lack 

any real distinction. Because Sollers, Inc. and Sollers College have operated as a common 

enterprise, each of them is liable for the acts and practices alleged below. 

COMMERCE 

12. At all times relevant to this Complaint, Defendants have maintained a substantial 

course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 

15 U.S.C. § 44. 

DEFENDANTS’ BUSINESS ACTIVITIES 

Overview of Defendants’ Business 

13. Defendants operate Sollers College, a for-profit school with a single campus in 

New Jersey, as well as online course offerings. Defendants target consumers who have some 

education or work experience and are seeking a career change, claiming to “upskill[] America 

for the jobs of the future.” 

14. Defendants offer, among other things, short-term certificate programs in the fields 

of information technology and life sciences with durations ranging from a few weeks to several 

months. Examples of courses they offer include big data engineering, clinical trial management, 

and drug safety. Defendants charge consumers tuition ranging from $4,000 to $27,000, 

depending on the program selected. 

4 
 

 

 

 

c,.-m~ Sollers College 

Spons01ea 0 

Our mission is to equip individuals with the knowledge and skills 

needed for employment and career advancement. 

SollJ:R~ lOlllGI 

Sollers 

IIIIDI ,OU I...., .... ... 

)oi.c:aad ... 

• 121. .... , .. 

... 

• 3000• ......... llfflllt 100---

• 10Q ♦ -----

SOLLERS 1:0U 

STEP INTO A WORLD OF OPPORTUNITIES! 

So ers - Training a new generation of cl meal researchers. bioanaly._ 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 5 of 22 PageID: 5 

15. Defendants advertise and market Sollers College to prospective students via the 

internet, including on employment websites such as Indeed.com. Defendants also market their 

educational services with email and social media campaigns. 

Job Placement Misrepresentations 

16. Since at least 2018, Sollers has represented to consumers that the vast majority of 

Sollers graduates are placed in jobs, including within three months of graduation. For example, 

Sollers ran a Facebook advertising campaign touting, in red text, its “82% placement” rate 

directly under text stating “Sollers makes you a ready-on-day-one job candidate.” 

Ex. 1 

5 
 

SOLLERS 

COLLEGE 

HomE > Employers 

HOME SOLLERS• ACADEMICS• EMPLOYERS CAREER BLOGS CONTACT US FINO YOUR COURSE 

A One-stop Solution for Your Hiring Challenges 

The toughest challenges faced by corporations when it :omes to hiring ore a small talent pool to 

choose from, skills gap among graduates. high acquisition and training costs. and rapidly evolving 

skillset requirements. Sollers mokes hiring efficient ond effective by delivering high-quality job-ready 

candidates with the skills. competencies, and other requirements as defined by you. 

Of our students are placed 

within 3 months of 

graduation 

3000+ 

alumni employed in 

Fortune 100 companies 

placement rate in 2018 

\. (848)299-5900 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 6 of 22 PageID: 6 

17. Similar job placement claims have been repeated throughout Sollers’ website, 

www.sollers.edu. For example, clicking on the “Employers” tab on Sollers’ main navigation bar 

would bring consumers to a webpage, www.sollers.edu/corporate-partners, where the statement 

“90% of our students are placed within 3 months of graduation” was prominently displayed in 

large red text. 

Ex. 2 

18. Likewise, the claim that Sollers “record[s] an 82% placement rate within three 

months of graduation” (orange box added for emphasis) has appeared on Sollers’ “Testimonials” 

(www.sollers.edu/testimonials/) and “Success Stories” (www.sollers.edu/success-stories/) 

webpages. 

6 
 

 

Our Employer 

Partners Include: 

OUR 

STUDENTS 

WORKAT 

Sollers partners w ith 

industry-leading 

corporations and provides 

them with ready-on-day-one 

employees. We record an 

82% placement rote w ithin 

three months of graduation. 

Information 

Technology 

.r. 

TATA 

Cognizant 9 L&T lnfotech 

A Weill Cornell 

V Medicine 

Student Success Stories 

Syune arrived at Sollers, having completed her PhD in 

Biology at a Swedish University. Despite having worked 

as a research scientist in Armenia, Poland, and Sweden. 

she hod no US-based experience, which w as limiting her 

abilit y to pursue a satisfying science focused career. 

After finishing the Clinical Trial Management program at 

Sollers in Jan. 2019. Syune was hired by Catalyst 

Pharmaceuticals as a Clinical Research Associate. 

Clinical Trial industry 6 " 

Sampada Lokhande 

Clinical Trial Management 

•• • • 

What Our Students Say 

"Sollers has great certificate and internship programs in 

Clinical Trials domain. I have recently completed Clinical Data 

C::rionr o n r ,-,n r n m ,.,it,h C::,..l l o rc- T h e ir fnr, , lh , f n r i litnt nrC"' rnroor 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 7 of 22 PageID: 7 

Ex. 3 

19. Sollers reinforces these claims in recorded information sessions available on its 

YouTube channel, where school representatives highlight the school’s 80% placement rate. 

Sollers also touts its “82% placement rate” in the “About” section of its YouTube channel. 

7 
 

 

D VouTube Search 

Sollers College 

441 subscribers 

HOME VIDEOS PLAY LISTS CHANNELS ABOUT 

Description 

.,. ________ -f_oc_us•ei.d professional 1raining courses in informa11on 1echnology and life sciences. 

Wi1h an 82% plcfcemen1 ra1e, oilers assis1s in giving yourself a leading-edge. Sollers aims 10 equip 

1n 1v1 ua s w1 now e ge and skills needed for employmen1 and career advancemen1. If you have 

gained excellence in 1he field and earned 1op certifica1ions, 1rus1 me, no one can s1op you from ge11ing 

hired in leading pharmaceu1ical companies. 

e sollerscollege • Follow 

Stats 

Joined Apr 23, 2015 

793,940 Views 

8 ...,s,,ol"'!!le!"r"lscl"o""ll"' eg"'e""""' Em- ba,.,r""k"'o""!nl"' y""o""' ur.,.j""o"ur"l'n""ey"""to""w""a""' rd•s• a 

c1ence 

within 

Phone: 84 8- 260-8891, 

848- 480-0090 & 732-325- 1186 

SOLLERS coiuG 

Walkthrough righ 

doors of learning fo 

endless career growtl 

Join our CLINICAL RESEARCH 

demo session c'1 J-t·i __,,_. 1c:r • • o ... 

ree months of raduation. Join our Clinical 

esearch demo session: http://bit.ly/38HFyyy 

82w 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 8 of 22 PageID: 8 

Ex. 4 (orange box added for emphasis). 

20. Likewise, Sollers’ Instagram posts promote its “82% placement rate within three 

months of graduation” and its “82% placement rate.” (orange boxes added for emphasis). 

Ex. 5 

8 
 

 

 

 

 

 

8 

8 

sollerscollege • Follow 

sollerscollege Maximize your employability 

chance s with #SoHers, having 82% placement 

rates. Seek free assistance. oet advice for the 

mteM ew. and resume preparation. Enroll now. 

Attend our : demosession o n 26th Janua ry 2021. 

Book your ticket here: http://biLly/3o0KLtX 

~clinicaldatascience #careeropportunities 

83w 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 9 of 22 PageID: 9 

Ex. 6 

21. Sollers has also sent emails to prospective students claiming to have a “near 

perfect” success rate in placing graduates of its training programs in jobs. 

22. Defendants have possessed no reasonable basis for their 80%, 82%, 90%, or “near 

perfect” job placement claims, much less that they are able to do so within 3 months of 

graduation. Defendants inflate the number of students they claim to “place” by including anyone 

who does not communicate with Sollers after graduating. In addition, Sollers does not generally 

track the employment start dates for its students, and thus, lacks the information needed to 

support its claim that students were placed in jobs within 3 months of graduation. 

23. In fact, even using the data Sollers possessed, the job placement rate for Sollers 

graduates is substantially lower than then the 80%, 82%, 90% or “near perfect” rates featured 

prominently on its website and in its advertising campaigns. For example, while the placement 

rates for graduates of Sollers’ IT programs have improved in recent years, Sollers’ own data 

suggests that the current job placement rate for graduates of its Life Sciences programs remains 

as low as 52%. 

9 
 

 

 

 

 

Our Employer 

Partners Include: 

Cognizant 9 L&T lnfotech • 

A Weill Cornell ~ Medicine 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 10 of 22 PageID: 10 

24. Job placement rates are material to consumers who, during the admissions 

process, routinely ask questions about how their training will affect their ability to obtain a job. 

Sollers has highlighted its job placement rate throughout its website and in its advertisements, 

indicating that such information is relevant to a consumers’ selection of a school. If consumers 

knew that the job placement rate was lower than advertised, it would likely affect their conduct, 

including whether to attend Sollers. 

Employer Partnership Misrepresentations 

25. Sollers also has represented on its website that its partnerships with leading 

businesses in the clinical research, drug safety, and information technology fields result in jobs 

for its graduates at companies such as Pfizer, Weill Cornell Medicine, and Infosys. 

26. For example, navigating to the “Testimonials” (www.sollers.edu/testimonials/) or 

“Success Stories” (www.sollers.edu/success-stories/) webpages from Sollers’ home page or main 

navigation bar brings a consumer to webpages that, at various times, have listed Cognizant, L&T 

Infotech, Pfizer, Weill Cornell Medicine and Wipro as “Our Employer Partners.” 

Ex. 7 

10 
 

OUR STUDENTS 

WORK AT 

Solliers POrtners y;"" h<IUSll')'·keOOie'!Q (()r'S)(>totiOr s 

end l)SO'Wdt"s lherrt w ilh n:ody-on•dcr,--one 

,mpi~. V.._r«:or-cs on S:2'J6 p1oc,me11t rot• 

w,tHn thr,ec montt,s ~ gr-oduotor'I. 

Information Technology 

~ Mpt,os;• mod1s 

'iJ~=- KFORCE 

lnfbst-; Cognlz«rt 

Ae,/\. otek- Adecco 

Life Sciences 

-~ ""e= 

SANOFI ~ PPD' 

• PAREXEL. 

,.....,,, 

~ U,.._...,. I.Mgoae ,_ A S., 

.jMERCK ~ 

s;1ov1A' covMl"CE' 

~ ® ... ·-· 1.,..n,da 

aobvie 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 11 of 22 PageID: 11 

27. Both webpages have also featured the logos of over 20 other companies listed 

underneath text stating that “Sollers partners with industry-leading corporations and provides 

them with ready-on-day-one employees,” and that Sollers “record[s] an 82% placement rate 

within three months of graduation.” 

Ex. 8 

11 
 

OUR STUDENTS WORK AT 

Sollers partners with industry-leading corporations and provides them w ith ready-on-day-one employees. We 

record an 82% placement rate w ithin three months of graduation . 

-~ VAl@:r..:=:,:-:. SANOFI ~ ppo· • 

PAREXEL. 

,,,--..._ ~ ~~OU!ll ~Ulangone Smai MERCK ~ = IQVIA" MEDICAL CENTER Ha.pita! 

.<!!! 

COY~ ~ CJij;) Boehringer 

I I lnge!heim obbvie 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 12 of 22 PageID: 12 

28. The main webpages for its information technology and life sciences programs, 

accessible by clicking red “browse courses” buttons on Sollers’ main webpage, once again have 

highlighted the businesses that Sollers claims to “partner” with in close proximity to its claim 

that they have an “82% placement rate.” 

Ex. 9 

12 
OUR STUDENTS WORK AT 

Sollers partners with industry-leading corporations and prov des them w ith ready-on-day-one employees. 

We record an 82% placement rate w ithin three months of graduation . 

..... .,. w mod1s i~~~i;} ~ ~l?,~?,~i~ Mindtree 

'<·:;~:;:• TI\TI\ "....,"'"" 'ti# COHWl,TAH(V S(ltYl(U 

KFORCE lnfos)5 Cognizant A e rote k' Adecco 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 13 of 22 PageID: 13 

Ex. 10 

29. Finally, the “Corporate Partners” page, which has been accessible from the main 

navigation bar or by clicking a red button labeled “our partners” from Sollers’ main webpage, 

also has displayed prominently the logos of over a dozen different leading businesses in the 

13 
 

 

 

Our Students Work At 

AstraZeneca i, .. Cm) Boehringer Baxter c;=l\>1• 11

"•

11h - ~ 11111 lngelheim SANOFI 

celerion 

~ covM'fCE' Gt) C.CX.UM .. 4~1VUUTT 

- ~1totc,t.LCt..'"'1a 

. Cognizant SOlVTION$ MAOE R£AL r,..._._,....,c..i-,. 

I I @ lnVt ntiv 

,,,.......__ 

eCast Software + ~~~~MENT' ~Ulangone I I M(OICAl co1u• 

~ Mindtree 

Welcome to possible 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 14 of 22 PageID: 14 

fields of information technology and life sciences. 

Ex. 11 

30. In fact, many of the businesses featured on Sollers’ website have no partnership 

with the school whatsoever, much less one that results in Sollers graduates getting jobs at those 

companies. 

31. In May 2022, Weill Cornell Medicine sent Sollers a cease-and-desist letter 

demanding that Sollers remove its logo from the school’s website because it was “not an 

‘employer partner’ or ‘corporate partner’” and use of its logo was therefore “false and 

misleading.” That same month, Aerotek, a staffing company, also sent Sollers a letter 

demanding that Sollers immediately remove its name and logo from the school’s website. In the 

14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 15 of 22 PageID: 15 

wake of those letters, and after becoming aware of the FTC’s investigation, Sollers removed 

these and a few other employer logos from some, but not all, places on its website. 

32. Employer partnerships that result in jobs are material to consumers who, during 

the admissions process, routinely ask questions about the employment outcomes and job 

prospects of Sollers graduates. Sollers’ decision to prominently—and repeatedly—display the 

logos of well-known companies on its website demonstrates that Sollers was aware that its 

relationship with a well-respected employer would be a key factor in a consumer’s decision to 

attend. If consumers knew that such employment partnerships were non-existent, it would likely 

affect their decision making, including whether to attend Sollers. 

33. Students have complained to Sollers that they had been misled by its job 

placement rates, including via the Washington Attorney General’s Office. 

Use of Illegal Consumer Credit Contracts 

34. Sollers has encouraged students to pay for their education via income share 

agreements (“ISAs”) that do not contain legally required disclosures. ISAs are a credit option 

where students cover the cost of attendance by agreeing to pay the school a share of their future 

income. 

35. Under the specific terms of Sollers’ ISAs, students agree to pay Sollers a fixed 

percentage of their future income on a monthly basis, typically for two years. Ex. 12 (Sample 

ISA). This fixed percentage, known as the “Income Share,” generally ranges between 10% and 

20% of a student’s monthly earned income. 

36. Students receive no money from Sollers as part of these agreements. Instead, the 

cost of the program is converted into a debt obligation that the students have to repay. 

15 
 

 

 

 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 16 of 22 PageID: 16 

37. Failure to comply with the terms of the ISA allows Sollers to collect a lump-sum 

payment, generally around $45,000 (plus fees and collection costs), and refer consumers to debt 

collection agencies. The ISAs also authorize Sollers to run a credit check on potential students 

and warn that late payments, missed payments, or other defaults may be reported to credit 

bureaus. 

38. Following a one-month grace period, students who graduate or withdraw from 

Sollers’ programs and whose earned income is above a specific minimum annual amount are 

obligated to make monthly payments. Throughout the duration of the ISA, students are required 

to promptly provide Sollers with documentation of any change to their earned income. 

39. Payment is deferred for any month in which students can demonstrate that their 

earned income is less than the monthly equivalent of the minimum annual amount. In the event 

of deferment, Sollers may extend the total payment term by as many months as were deferred, 

generally up to an additional forty-eight months. Thus, the period during which a student is 

obligated to pay back a percentage of their income can range from a minimum of two years to a 

maximum of six years, depending on the specific ISA and the number of deferments. 

40. Once a student has made monthly payments for the maximum payment term, their 

obligation is satisfied, regardless of whether they have paid more or less than the price of 

enrollment. Though the repayment formula for Sollers’ ISAs can result in monthly payments 

being equal to zero, for the duration of the payment term students have an obligation to pay 

whenever their income exceeds the deferment threshold. 

41. Typically, the ISA requires students who want to meet their payment obligations 

before the payment term ends to pay $18,000 within one month of graduation or withdrawal, or 

$45,000 thereafter, plus fees and less payments already made. 

16 
 

 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 17 of 22 PageID: 17 

42. Approximately 90% of students who entered into ISAs with Sollers are either 

actively in repayment or defaulted on their agreements and now owe Sollers a fixed amount. 

Sollers has taken action against students who defaulted by sending them demand letters and 

referring them to debt collection agencies. 

43. Defendants’ ISAs fail to include legally required Holder Rule notices. The 

Holder Rule requires any seller that takes or receives a consumer credit contract to include the 

Holder Rule notice in such contracts informing consumers of their right to assert claims and 

defenses about seller misconduct — such as a seller’s misrepresentations — against any holder 

of the contract. 

44. Between August 2018 and April 2021, Sollers extended 392 ISAs, none of which 

included the disclosures mandated by the Holder Rule. Sollers subsequently sold a portion of its 

ISAs to third-party investors. 

45. Based on the facts and violations of law alleged in this Complaint, the United 

States has reason to believe that Defendants are violating or are about to violate laws enforced by 

the Commission because their business is ongoing and their website appears active as of the date 

of filing this Complaint. 

VIOLATIONS OF THE FTC ACT 

46. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts 

or practices in or affecting commerce.” 

47. Misrepresentations or deceptive omissions of material fact constitute deceptive 

acts or practices prohibited by Section 5(a) of the FTC Act. 

17 
 

 

 

 

 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 18 of 22 PageID: 18 

Count I 

48. In numerous instances in connection with the advertising, marketing, promotion, 

offering for sale, or sale of educational services, including through the means described in 

Paragraphs 16 - 24, Defendants represent, directly or indirectly, expressly or by implication, that 

the vast majority of Sollers’ graduates (such as 80%, 82%, or 90%) are placed in jobs, including 

within three months of graduation. 

49. The representations set forth in Paragraph 48 are false or misleading or were not 

substantiated at the time the representations were made. 

50. Therefore, the making of the representations as set forth in Paragraph 48 

constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. 

§45(a). 

Count II 

51. In numerous instances in connection with the advertising, marketing, promotion, 

offering for sale, or sale of educational services, including through the means described in 

Paragraphs 25 - 33, Defendants represent, directly or indirectly, expressly or by implication, that 

Sollers College’s partnerships with prominent employers, such as Pfizer, Weill Cornell 

Medicine, and Infosys, result in jobs for its graduates at those companies. 

52. The representations set forth in Paragraph 51 are false or misleading or were not 

substantiated at the time the representations were made. 

53. Therefore, the making of the representations as set forth in Paragraph 51 

constitutes a deceptive act or practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 

45(a). 

18 
 

 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 19 of 22 PageID: 19 

VIOLATIONS OF THE HOLDER RULE 

54. The Holder Rule, promulgated by the Commission under Section 18 of the FTC 

Act, 15 U.S.C. § 57a, became effective in its entirety on May 14, 1976, and since that date has 

remained in full force and effect. 

55. “Creditor” means a person who, in the ordinary course of business finances the 

sale of goods or services to consumers on a deferred payment basis. 16 C.F.R. § 433.1(c). 

Defendants Sollers, Inc. and Sollers College are “creditors” as defined in the Holder Rule 

because they finance the sale of goods or services to consumers on a deferred payment basis in 

the ordinary course of business. 

56. “Seller” means a person who, in the ordinary course of business, sells or leases 

goods or services to consumers. 16 C.F.R. § 433.1(j). Defendants Sollers, Inc. and Sollers 

College are “sellers” as defined in the Holder Rule because they sell goods or services to 

consumers in the ordinary course of business. 

57. “Consumer credit contract” means, in relevant part, “any instrument which 

evidences or embodies a debt arising from. . . a ‘financed sale.’” 16 C.F.R. § 433.1(i). 

“Financ[ing] a sale,” is defined in turn, as “extending credit to a consumer in connection with a 

‘credit sale’ within the meaning of the Truth in Lending Act and Regulation Z.” 16 C.F.R. § 

433.1(e). Sollers’ ISAs are consumer credit contracts because they “evidence or embody a debt” 

arising from an “exten[sion] of credit” to a consumer in connection with a “credit sale” as those 

terms are defined and used in the Holder Rule. 

58. Defendants Sollers, Inc. and Sollers College take or receive consumer credit 

contracts in the form of Income Share Agreements. 

19 
 

 

 

 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 20 of 22 PageID: 20 

59. The Holder Rule prohibits sellers from taking or receiving a consumer credit 

contract which fails to contain the following provision in at least ten point, bold face type: 

NOTICE 

ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO 

ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT 

AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT 

HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER 

BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE 

DEBTOR HEREUNDER. 

16 C.F.R. § 433.2(a). 

60. Pursuant to Section 18(d)(3) of the FTC Act, 15 U.S.C. § 57a(d)(3), a violation of 

the Holder Rule constitutes an unfair or deceptive act or practice in violation of Section 5(a)(1) 

of the FTC Act, 15 U.S.C. § 45(a)(1). 

Count III 

61. In numerous instances, in connection with the selling or offering for sale of goods 

or services to consumers in or affecting commerce, as “commerce” is defined in Section 4 of the 

FTC Act, 15 U.S.C. § 44, Defendants have violated the Holder Rule by taking or receiving 

consumer credit contracts without the Notice required by 16 C.F.R. § 433.2(a). 

CONSUMER INJURY 

62. Consumers are suffering, have suffered, and will continue to suffer substantial 

injury as a result of Defendants’ violations of the FTC Act and the Holder Rule. Absent 

injunctive relief by this Court, Defendants are likely to continue to injure consumers and harm 

the public interest. 

20 
 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 21 of 22 PageID: 21 

PRAYER FOR RELIEF 

Wherefore, Plaintiff requests that the Court: 

A. Enter a permanent injunction to prevent future violations of the FTC Act and the 

Holder Rule by Defendants; 

B. Award monetary and other relief within the Court’s power to grant; and 

C. Award any additional relief as the Court determines to be just and proper. 

21 
 ____________________________ 

Case 2:23-cv-21250 Document 1 Filed 10/18/23 Page 22 of 22 PageID: 22 

Respectfully submitted, 

Dated: ____________________ 10/18/2023

s/ Wendy Miller 

WENDY MILLER 

PAUL MEZAN 

Federal Trade Commission 

600 Pennsylvania Ave., NW 

Mail Stop: CC-10232 

Washington, DC 20580 

(202) 326-3571, 2695 

Attorneys for Plaintiff 

FEDERAL TRADE COMMISSION 

22