Nov 16, 2015 03:41 PM EST By Russell Westerholm, UniversityHerald Reporter

The U.S. Justice Department and attorneys general for a dozen states reached an agreement to settle a legal matter with one of the nation's largest for-profit education companies.

According to The Pittsburgh Post-Gazette, Education Management Corp. (EDMC) agreed to pay $95.5 million in returned student loans and vowed to be more transparent in recruiting prospective students. In return, 39 state attorneys general agreed to end their investigations into EDMC's alleged wrongdoing.

Despite the huge payout, EDMC did not admit guilt in the agreement and maintained the accusations against them are unfounded. Considered the second-largest for-profit education company in the U.S., EDMC allegedly provided recruiters with illegal payments meant to incentivize enrolling students.

"We are also pleased to have resolved the civil claims raised by the Department of Justice and state attorneys general," EDMC President and CEO Mark A. McEachen said in a statement. "Though we continue to believe the allegations in the cases were without merit, putting these matters behind us returns our focus to educating students."

The U.S. Justice and Education Departments have been pursuing legal cases against numerous for-profit education companies for allegations of dishonest recruitment practices. Most notably, Corinthian Colleges shut down all its schools due to a federal investigation into whether or not the company used false job placement statistics.

EDMC operates the Art Institutes, Argosy University, South University and Brown Mackie College, a system that is still looking to shed legal troubles. McEachen will continue to fight the Education and Justice Departments on other fronts, but The Post-Gazette noted he was hired to put these legal disputes behind EDMC.

"This historic resolution exemplifies the Justice Department's deep commitment to protecting precious public resources; to defending American consumers; and to standing up for those who are vulnerable to mistreatment, abuse, and exploitation," Attorney General Loretta E. Lynch said in a statement. "Operating essentially as a recruitment mill, EDMC's actions were not only a violation of federal law but also a violation of the trust placed in them by their students - including veterans and working parents - all at taxpayer expense.  In the days ahead, we will continue working with our invaluable partners at the U.S. Department of Education, through initiatives like the inter-agency task force on for-profit education, to ensure that our nation's aspiring learners are finding and gaining access to educational opportunities that are right for them."

See Now: Covert Team Inside Newsweek Revealed as Key Players in False Human Trafficking Lawsuit