Caltech is ending its partnership with an online training provider following the proposed settlement of a class-action lawsuit that accused the university of misleading students about its limited involvement with a costly cybersecurity boot camp using its name.

Students paid more than $10,000 in tuition to attend the “Caltech Cybersecurity Bootcamp,” only to later learn it was entirely run by a for-profit company called Simplilearn and did not feature instructors or curriculum developed by the prestigious university, according to the lawsuit.

The university will pay $140,000 of the $725,000 payout, while Simplilearn is responsible for the rest, according to the terms of the proposed settlement awaiting the judge’s approval.

Though the settlement does not bar the program from continuing, Caltech President Thomas Rosenbaum announced July 7 — the same day it became public — that the university’s Center for Technology and Management Education (CTME) will stop working with Simplilearn effective Nov. 30.

“CTME will honor commitments to students currently enrolled in online bootcamp programs conducted in partnership with Simplilearn, but will not launch or host any new courses with Simplilearn,” Rosenbaum wrote in the campuswide email. “CTME will continue to offer proprietary professional and executive education programs that are centered on campus to both individuals and organizations through certificate courses led by CTME faculty, including instructors from campus, JPL, and industry.”

The lawsuit originally was filed in July 2023 by Elva Lopez, a student who completed the program in 2021.

Lopez took out $14,000 in private loans to attend the program, believing Caltech’s reputation would help her jumpstart a new career in cybersecurity. The program used Caltech’s website and her initial point of contact, who identified themselves as a student adviser, had a Caltech email address, though the adviser did not work for the university and was located in Arizona.

Once she arrived, Lopez learned one of her instructors had a degree in music theater, had only recently completed the program himself and couldn’t answer students’ technical questions, according to the lawsuit.

Her lawsuit accused the university and Simplilearn of deceptive advertising and argued students wouldn’t have joined, or paid as much, if they knew Caltech was only lending its name.

“Ms. Lopez did not learn that her instructors were employed by, and every aspect of the program was run by, Simplilearn/Fullstack, not Caltech, until she was in the program,” the complaint reads.

Lopez was unable to find employment in the field, despite attending job fairs and working with career counselors provided by the program.

Eric Rothschild, the litigation director for the National Student Legal Defense Network, which represented Lopez, said the attachment of Caltech’s name to the program “created expectations” that the bootcamp did not meet.

Under terms of the proposed settlement, Simplilearn will pay $340,000 and Caltech $60,000 to about 263 current and former students, all of whom are California residents. The payment is roughly equivalent to a refund of about 16% of the $2.4 million tuition paid, according to court filings.

Another $325,000 will go toward attorneys’ fees, with Caltech footing $80,000 of the bill.

If Caltech had continued the partnership with Simplilearn, the university would have been required to clearly spell out Simplilearn’s involvement on its website and in brochures, to create a directory listing the Bootcamp’s instructors and their expertise, and to review and approve curriculum, instructors and marketing content over the next five years.

The university and Simplilearn also agreed not to “hire or use Bootcamp instructors whose only credentials for teaching cybersecurity are that they have graduated from a cybersecurity bootcamp.”

“Though it looks like that program will not continue, I think it sets a good example for other schools that are considering running programs like this,” Rothschild said of the settlement.

In a statement, Caltech stressed that it disagrees with the complaint’s allegations. The settlement did not admit any liability or wrongdoing.

“Caltech is confident that students have been well-informed about the CTME’s role in the bootcamp programs offered in collaboration with Simplilearn and its predecessor, Fullstack,” the statement reads. “CTME remains deeply committed to delivering high-impact technical training and professional education. Moving forward, CTME will concentrate on its signature trainings and certification programs — trusted by thousands of individuals and leading organizations, including Fortune 500 companies, for over 30 years.”

Caltech has appointed a faculty oversight committee to “guide and inform future initiatives” within CTME and to advise on strategy, curriculum and education programming going forward, according to Rosenbaum’s announcement.