Is Cardean University in trouble?

The news today is that Cardean U, offering DETC-accredited degrees by distance learning, has laid off 42% of its 300+ employees in one fell swoop. Cardean is the school name used by UNext, the company originally funded by Michael Milken and Larry Ellison. Another reminder of the risks in dealing with a proprietary school, where the cost accountants could overrule the deans.

(Cardean is making all the expected and appropriate statements about consolidating for a more secure future, which may well be the case.)