Online School Operator Agrees to Pay California $168.5M

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SACRAMENTO, Calif. (AP) — A for-profit company that operates online charter schools in California has agreed to pay $168.5 million as part of a settlement with the state over claims it manipulated attendance records and overstated the academic progress of students.

The East Bay Times reports the deal, announced Friday by Attorney General Kamala Harris, also requires Virginia-based K12 Inc. to take a slew of corrective actions.

The settlement comes almost three months after the Bay Area News Group published an investigation of K12 Inc., which received more than $310 million in state funding for its profitable but low-performing network of California Virtual Academies, which serve about 15,000 students.

K12 said in a statement it had admitted no wrongdoing and insisted it had already planned to take up several of the 60 corrective actions required under the agreement over the next few years.

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