Two companies have filed lawsuits against Saint Augustine’s University over unpaid bills, according to WRAL News.
The lawsuits, filed two weeks apart for a total of more than $18 million, come amid a turbulent time for the university. Last month, it lost its accreditation with the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) for failure to prove financial stability and proper oversight. In late 2022, the commission placed the university on probation after it failed to meet accreditation standards due to significant financial issues, including $32 million in debts and nearly $10 million in IRS tax liens.
SBA, a wireless company, says the university defaulted on an agreement only after a year of starting business together. The company wants the university to pay the early termination fee of nearly $17 million plus interest.
It was SBA’s lawsuit that prompted the IT company Avaria also to take legal action against Saint Augustine University. Avaria’s lawsuit alleges the university paid some but not all of its bills that date back to 2020. The IT company alleges Saint Augustine owes $448,067.33 in late bills and $884,520 for the remainder of its contract.
Byron Saintsing, the lawyer representing Avaria, says the company still provides services to the university despite the lawsuit.
“It’s a tough line, particularly when you’re trying to be supportive of the university, where you draw that line between being supportive and continuing to offer services versus protecting your own pocketbook,” Saintsing told WRAL News. “In our particular case, the services that are being provided are pretty crucial to the university. It’s basically a lot of the IT infrastructure. If they were to pull the plug on that, it would make a very bad situation even worse.”
Two years after being placed on probation, the school received financial backing from 50 Plus 1 Sports, a Black-owned development company. As BLACK ENTERPRISE previously reported, 50 Plus 1 Sports was willing to invest $70 million into the university, allowing it to be self-sufficient while keeping its land. The agreement prioritized eliminating debt and investing in campus improvements, all while ensuring that the university would become financially stable.
The commission, however, rejected the deal.
In the meantime, the university is fighting for its future and calling on alums, corporate partners, and the broader HBCU community for support.
BE contacted Saint Augustine’s University for comment but has not heard back.
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