Sylvan Learning Systems Inc. says it has been sued by American College Testing Service over charges that Sylvan broke laws in its successful fight for a National Association of Securities Dealers' contract.
In January, Columbia-based Sylvan was awarded a 10-year contract to conduct the NASD's Series 7 exams for licensing brokers. American College Testing, a not-for-profit, also sought the contract, which Sylvan said will be worth $5 million to $6 million annually.
American College Testing charges in a suit filed in federal court in Cedar Rapids, Iowa, that Sylvan interfered with an agreement it had pending with the NASD and violated antitrust laws, Sylvan said.
"All of their charges are without merit," Sylvan Chief Financial Officer Lee McGee said Monday. "We conducted ourselves professionally and defend anything we did in the process."
Sylvan shares fell $1 yesterday to $29.
NASD spokesman Michael Robinson said yesterday that the association is not a defendant in the suit. Asked whether Sylvan had had any improper dealings with the NASD, he said, "You would have to ask them."
Pub Date: 11/20/96