Students of BloomTech, formerly known as Lambda School, filed a class-action lawsuit against the coding boot camp

Four students at the coding boot camp Bloom Institute of Technology, formerly known as Lambda School, have filed a class-action lawsuit against the school.

The National Student Legal Defense Network, along with cocounsel Miner, Barnhill & Galland and Cotchett, Pitre & McCarthy, filed the lawsuit Thursday on behalf of the students. The school, known as BloomTech for short, offers students the option to pay up-front tuition, or to pay no up-front tuition fees and instead pay back their tuition through an income-share agreement, meaning that when a student lands a job paying $50,000 or more, they must pay back 14% of their income for four years or until they hit a cap of $40,000. 

The students, who attended from March 2020 until the present, say in the lawsuit that they enrolled because they were attracted by the high job-placement rates in tech. They allege that the school had false and misleading information about job-placement rates on its website and on CEO Austen Allred's Twitter account. 

What's more, they say that BloomTech engaged in unlicensed lending and point out that the school operated without California state approval until August 2020. The students are asking for equitable relief, such as canceling their income-share agreements or getting a refund.

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