School sued for over $18 million dollars.
A month after losing its academic accreditation, the drama at St. Augustine’s University (SAU) continues.
The small private HBCU in Raleigh is now being sued by two tech companies for over $18 million for reportedly failing to pay for contracted services. That’s $18 million in addition to at least $7 million owed the federal government in back taxes, millions more in fees owed to assorted vendors, and probably millions more in pending lawsuits from former employees if the school loses in litigation.
SAU officials previously had indicated that the school had secured a $70 million land-lease loan with a Florida developer, but that deal ran into trouble with the state attorney general’s office, which was required to approve the terms because SAU is a nonprofit institution. Not much has been revealed since about the status of that deal…