Attorney General Jon Bruning

News Release

FOR IMMEDIATE RELEASE Contact: Holley Hatt

June 13, 2007 4:45pm CDT 402.471.2067

8^th Circuit Court Affirms Dismissal of

California Alternative High School Case

(Lincoln, Neb.) Attorney General Jon Bruning announced today that the 8^th U.S. Circuit Court of Appeals affirmed the dismissal of a lawsuit California Alternative High School (CAHS) Principal Daniel Gossai filed against Nebraska officials.

Gossai filed the federal civil lawsuit in response to an action Nebraska filed against CAHS in state court. Nebraska’s lawsuit alleged CAHS violated Nebraska’s consumer protection laws in a fraudulent education scheme.

“This lawsuit was nothing more than Mr. Gossai’s attempt to thwart our action in state court, and I’m pleased with the 8^th Circuit’s ruling,” Bruning said. “The fact remains: CAHS is a scam. It preys on Nebraska consumers who are trying to better their lives.”

In February, the Douglas County District Court ordered CAHS and Gossai to pay a total of $6,250 in restitution to 18 Nebraska consumers and $18,000 in civil penalties to Nebraska. In March, Gossai appealed the ruling to the Nebraska Court of Appeals.

The restitution order resulted from a permanent injunction entered in March 2005 at the request of the Attorney General. In the injunction, the Douglas County District Court found that Gossai and CAHS violated Nebraska’s Deceptive Trade Practices Act and Consumer Protection Act by falsely representing that its courses and ‘diplomas’ were legitimate and would enable students to gain admittance to accredited institutions.

The 2005 permanent injunction remains in effect, and CAHS and Gossai are barred from operating any course of study using the words ‘high school’ or ‘diploma’ in Nebraska, unless it complies with state education laws. It also prohibits the company from implying in written or oral communication that a person could gain admittance to an accredited college or university upon completion of the courses.

# # #