The state had alleged that Lehigh Valley College misrepresented information about student loans, job placement and the ability to transfer credits elsewhere. The college says it didn't break any laws and it cooperated with the investigation.
The state and the college's owners signed an agreement in which the owners agree to pay $200,000 to settle the allegations. The agreement was filed in court Tuesday.
Earlier, the college had announced it planned to close by the end of 2009. It was formerly known as the Allentown Business School.
