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Proposed Mountain State University settlement gets preliminary approval from 3-judge panel


BECKLEY, West Virginia — A January hearing is set on a proposed settlement of hundreds of lawsuits against Mountain State University.

Media outlets report that a three-judge mass litigation panel gave preliminary approval to the settlement Monday following a hearing in Beckley. The decision allows the former university to begin liquidating its assets.

Proceeds from the liquidation will be used to compensate former students who sued the university after it lost its accreditation in 2012. The compensation fund also would include money from Mountain State's insurance carrier and the U.S. Department of Education.

The University of Charleston took over Mountain State's campuses in Beckley and Martinsburg so students could complete their degrees. The university's lease runs through June 2015.

A hearing is set for Jan. 15 in Charleston to discuss the settlement's final terms.

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