Washington Post 2015 Annual Report Download - page 50

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Joyce/Dayton owns three properties: its corporate headquarters in Kettering, OH, and manufacturing facilities in
Portland, IN, and Clayton, OH. It also leases a manufacturing facility in West Hartford, CT.
Group Dekko owns seven U.S. properties: a 200,600-square-foot headquarters office and manufacturing building
in Garrett, IN; a 65,950-square-foot manufacturing building in Avilla, IN; 64,500 square feet of manufacturing
and warehouse space in Ardmore, AL; 61,750 square feet of warehouse space in El Paso, TX; and a 22,500-
square-foot new product development center in LaOtto, IN. In addition, Group Dekko owns 126,000 square feet
of manufacturing and office space in Juarez, Mexico. In the U.S., Group Dekko leases 46,370 square feet of
manufacturing and warehouse space in North Webster, IN, under a lease that expires in 2016; a 30,000-square-
foot warehouse building in Kendallville, IN, pursuant to a month-to-month lease; and a data/training facility in
Kendallville, IN, expiring 2020. Group Dekko also separately leases two office condominiums in Chicago, IL,
and Grand Rapids, MI. Both of those leases will expire in 2018.
The Slate Group leases office space in New York, NY, and Washington, DC.
SocialCode leases office space in Washington, DC; New York, NY; San Francisco, CA; Los Angeles, CA; and
Chicago, IL.
Item 3. Legal Proceedings.
On February 6, 2008, a purported class-action lawsuit was filed in the U.S. District Court for the Central District
of California by purchasers of BAR/BRI bar review courses, from July 2006 onward, alleging antitrust claims
against Kaplan and West Publishing Corporation, BAR/BRI’s former owner. On April 10, 2008, the court
granted defendants’ motion to dismiss, a decision that was reversed by the Ninth Circuit Court of Appeals on
November 7, 2011. The Ninth Circuit also referred the matter to a mediator for the purpose of exploring a
settlement. In the fourth quarter of 2012, the parties reached a comprehensive agreement to settle the matter. The
settlement was approved by the District Court in September 2013 and will be administered following the
resolution of appeals relating to attorney fees.
On or about January 17, 2008, an Assistant U.S. Attorney in the Civil Division of the U.S. Attorney’s Office for
the Eastern District of Pennsylvania contacted KHE’s former Broomall campus and made inquiries about the
Surgical Technology program, including the program’s eligibility for Title IV U.S. Federal financial aid, the
program’s student loan defaults, licensing and accreditation. Kaplan responded to the information requests and
fully cooperated with the inquiry. The ED also conducted a program review at the Broomall campus, and Kaplan
likewise cooperated with the program review. On July 22, 2011, the U.S. Attorney’s Office for the Eastern
District of Pennsylvania announced that it had entered into a comprehensive settlement agreement with Kaplan
that resolved the U.S. Attorney’s inquiry, provided for the conclusion of the ED’s program review and also
settled a previously sealed U.S. Federal False Claims Act (False Claims Act) complaint that had been filed by a
former employee of the CHI-Broomall campus. The total amount of all required payments by Broomall under the
agreements was $1.6 million. Pursuant to the comprehensive settlement agreement, the U.S. Attorney inquiry has
been closed, the False Claims Act complaint (United States of America ex rel. David Goodstein v. Kaplan, Inc. et
al.) was dismissed with prejudice and the ED will issue a final program review determination. However, to date,
the ED has not issued the final report. At this time, Kaplan cannot predict the contents of the pending final
program review determination or the ultimate impact the proceedings may have on Kaplan.
During 2014, certain Kaplan subsidiaries were subject to two other unsealed cases filed by former employees that
include, among other allegations, claims under the False Claims Act relating to eligibility for Title IV funding.
The U.S. Government declined to intervene in all cases, and, as previously reported, court decisions either
dismissed the cases in their entirety or narrowed the scope of their allegations. The two cases are captioned:
United States of America ex rel. Carlos Urquilla-Diaz et al. v. Kaplan University et al. (unsealed March 25,
2008) and United States of America ex rel. Charles Jajdelski v. Kaplan Higher Education Corp. et al. (unsealed
January 6, 2009).
35 GRAHAM HOLDINGS COMPANY