09/02/2010 07:26 pm ET Updated May 25, 2011

Goldman's For-Profit Colleges Battle Obama Crackdown

It's a classic move by an industry player feeling the squeeze of pending regulation: Hire a lobbying firm to create the appearance of widespread opposition via a carefully stage-managed astroturf campaign. One of the latest outfits to give this strategy a try: Education Management Corporation (EDMC), a multibillion-dollar heavyweight in the for-profit higher education industry that's the subject of multiple lawsuits and ample criticism from investors, lawmakers, and government officials who accuse the company of a range of deceptive business practices. The company, whose majority stockholder is Goldman Sachs, recently hired a GOP-linked lobbying shop known for its astroturfing prowess to fight a proposed federal rule that has the entire industry fretting about its future.

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