Hartford, CT – A Superior Court judge has approved a $5 million settlement with Stone Academy and its owners. This resolves claims from the state and former students after the for-profit nursing school abruptly shut down.
The decision, issued Thursday, Feb. 27, came one day after a fairness hearing where students and state officials laid out financial and academic losses tied to the school’s collapse.
Stone Academy, which operated for more than 150 years, closed all three of its campuses in February 2023.
The shutdown left students without degrees or viable paths to licensure. The Connecticut Attorney General’s Office accused the school’s owners of draining millions from the institution while failing to deliver promised education and training.
The settlement ends all claims against Stone Academy, its affiliated entities Career Training Specialists LLC and Paier College of Art Inc., and its owner, Joseph Bierbaum. It also resolves a private class action brought by students against the academy, Bierbaum, and Creative Career Trust.
Under the terms of the agreement, compensation for former students will be handled through the private class action process.
The state will not retain any portion of the settlement, aside from $150,000 earmarked to help affected students prepare for nursing exit exams.
Officials said this sum would be directed toward remedial support, ensuring students still have an opportunity to complete necessary certifications.
State attorneys described the settlement as a full and final resolution of all civil and regulatory claims tied to the academy’s closure.
Attorney James Healy, representing Stone Academy, confirmed the deal covers both the class action and the state’s lawsuit. He noted that the agreement removes any remaining legal uncertainty surrounding the defunct institution.
Beyond financial restitution, the settlement provides measures to aid displaced students.
Griffin Hospital School of Allied Health Careers will offer pathways for former Stone Academy students to complete their training. The Connecticut Department of Public Health will cease licensure investigations based solely on a student’s attendance at the shuttered school, eliminating a regulatory hurdle for those pursuing nursing careers.
Bierbaum will be barred from working in higher education for five years. Any former owners or officers seeking to establish another for-profit school in Connecticut must notify the Office of the Attorney General.
The state has also petitioned the U.S. Department of Education to discharge student loan debt tied to Stone Academy.
Officials are working with student representatives and legal counsel to push for state legislation that would reimburse out-of-pocket tuition costs and provide additional career support.
