The financial troubles for Saint Augustine’s University are mounting after a judge ordered the HBCU to pay one of the companies that filed a lawsuit against the school for unpaid services.
Court documents show that a Wake County, North Carolina, judge certified an entry of default for the university to pay SBA Connect, LLC $20,234,785.30 plus interest and $11,551.23 in attorney’s fees. The judge also ordered the school to pay any fees related to the court action,
according to CBS 17.The Boca Raton-based company filed a lawsuit against Saint Augustine’s in March, claiming the school did not pay them for their services, as BLACK ENTERPRISE previously reported. The Raleigh-based IT company Avaria also filed a lawsuit.
Instead of fulfilling invoices, both Avaria and SBA Connect, LLC gave SAU the option of paying an early termination fee of nearly $17 million for each company.
All this comes after what has been an uphill
financial battle for the school over the last several years. As a result, Saint Augustine’s lost its accreditation from the Southern Association of Colleges and Schools Commission on Colleges. The school also lost its appeal to reinstate its accreditation, prompting a heated town hall on April 11, attended by alums, current students, and the community. Those in attendance accused university leaders of withholding information.Weeks later, Board Chairman Brian Boulware responded to the town hall. He stated the information circulating on social media and public forums was misinformation.
“We have refrained from engaging in public disputes to protect the university’s ability to negotiate with partners, respond to accrediting bodies, and operate with integrity in accordance with its legal obligations,” said Boulware.
Before the lawsuit was filed, the university was placed on probation in 2022 after failing to meet accreditation standards. The institution has faced financial issues totaling more than $30 million, and nearly $10 million in tax liens.
Speaking on behalf of the board, Boulware said university leaders are fighting for its future and not just its “reputation” and welcomes everyone to “contribute constructively to that mission.”
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