Saint Augustine’s University Faces $18 Million Lawsuit: What You Need to Know

Saint Augustine’s University is facing some tough challenges. Recently, two companies filed lawsuits against the university for unpaid bills totaling more than $18 million. This comes shortly after the university lost its accreditation due to financial instability.

The Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) placed the school on probation in late 2022 because it couldn’t meet accreditation standards. The situation has worsened, with reported debts of $32 million and significant tax issues with the IRS, including nearly $10 million in liens.

One of the lawsuits is from SBA, a wireless company, accusing the university of defaulting on a contract just a year after it began. They seek nearly $17 million in termination fees along with interest. This lawsuit prompted Avaria, an IT company, to also take action, claiming that Saint Augustine owes them over $1.3 million in overdue bills dating back to 2020.

Byron Saintsing, Avaria’s lawyer, mentioned the difficult balance they face. While they want to support the university, they also need to protect their own business interests. “The services that we’re providing are crucial,” he stated, emphasizing that halting their support could worsen the university’s precarious situation.

In an effort to regain stability, Saint Augustine’s University previously sought financial support from 50 Plus 1 Sports, a Black-owned development firm, which proposed a $70 million investment. This plan aimed to eliminate debt and enhance campus facilities. Unfortunately, the commission turned down this proposal, leaving the university looking for new strategies to secure its future.

The community, including alumni and corporate partners, is being called upon to rally support for the institution. Historically, support for HBCUs has been vital in overcoming financial challenges. As the university navigates this difficult period, it remains in a fight for survival, emphasizing the need for collective action from its supporters.

As the situation develops, it is important to keep an eye on how it impacts students, staff, and the university’s operations. For those interested in the historical context, HBCUs like Saint Augustine’s have long been cornerstone educational institutions for many Black Americans, contributing significantly to the community and society at large.

For more insights on the current situation at Saint Augustine’s University, visit WRAL News.

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HBCU,Lawsuits,Saint Augustine’s University