Idaho AG drops 'transparency' lawsuit over University of Phoenix deal

Angela Palermo, The Idaho Statesman on Jun 18, 2025

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

BOISE, Idaho — Idaho Attorney General Raúl Labrador dismissed his lawsuit against the Idaho State Board of Education after it ratified an end to the proposed deal between the University of Idaho and the University of Phoenix.

Labrador sued the State Board in June 2023 over the way the controversial transaction came about. He accused the State Board of violating Idaho’s open meetings law when it negotiated the U of I’s planned purchase of the online, for-profit school in private.

He said in a news release Wednesday that the legal battle was about government transparency. Both parties agreed to cover their own litigation costs.

“This case was never about the merits of any particular transaction, but about ensuring government remains open and transparent for all Idahoans,” Labrador said. “Idaho’s Open Meeting Law requires government entities to conduct state business in public meetings with proper notice, ensuring transparency when taxpayer resources and state institutions are involved. The law reflects the principle that government accountability depends on public access to decision-making processes, particularly for transactions of significant scope and financial impact.”

The two universities called the proposed $550 million acquisition quits on June 3 after two years of negotiations.

The deal was plagued by ridicule and legal challenges from the start. In December, the Idaho Supreme Court returned a 4-1 victory in Labrador’s favor, overturning a lower court ruling that would have OK’d the secret government negotiations, according to the release.

The acquisition would have had Four Three Education, a nonprofit created by the U of I, buy Phoenix from its hedge fund owner, Apollo Global Management.

The U of I spent over $17 million trying to complete the deal, according to Jodi Walker, a spokesperson for the university. By terminating it, Phoenix is expected to fully reimburse the U of I for out-of-pocket expenses it incurred while pursuing the sale.

_____