Kilgore

ORDER GRANTING MOTION TO DISMISS THIRD AMENDED COMPLAINT

This matter came before the Court on March 29, 2010, on the motion to dismiss filed by Defendants KeyBank, National Association and Great Lakes Educational Loan Services, Inc. For the reasons set forth below, the motion is GRANTED.

BACKGROUND

Plaintiffs and putative class representatives Matthew C. Kilgore and William Bruce Fuller (“Plaintiffs”) are California residents who enrolled in a helicopter flight academy operated in Oakland, California by Silver State Helicopters, LLC (“Silver State”). The Third Amended Complaint alleges that Plaintiffs — and the class of student loan borrowers they seek to represent — paid Silver State nearly $60,000 in tuition to be trained as commercial helicopter pilots, but failed to complete the educational program before Silver State filed for bankruptcy on February 4, 2008. Plaintiffs financed their tuition by obtaining student loans from KeyBank, National Association and its education lending division, Key Education Resources (collectively “KeyBank”). Plaintiffs allege that KeyBank defied its own risk management policies to partner with Silver State, ignoring red flags — including the…