Lawsuit filed against e-school founder, leaders

Lawsuit filed to recoup past funding

Ohio's attorney general is suing the founder and leaders of the Electronic Classroom of Tomorrow aiming to recoup millions of dollars in public funding which flowed to the massive, now-defunct online school.

The lawsuit filed Tuesday names E-C-O-T founder William Lager and his two companies which provided management and curriculum services.

Their attorney says they look forward to "setting the record straight" and addressing "misapplication" of the law.

The lawsuit also names five E-C-O-T officials.

It targets Lager's profits from his companies' E-C-O-T contracts.

The lawsuit also goes after money paid under alleged improper contracts as well as funding received by E-C-O-T not justified by tallies of student participation.

The school of 11,000-plus students closed in January after the state started recouping nearly $80 million in disputed funding.

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