Now-closed Charlotte School of Law will pay former students $2.65 million under a proposed class-action settlement.

The school and student plaintiffs on Tuesday asked a federal judge in North Carolina to preliminarily approve the class and the settlement, saying it was the best deal the students could hope to achieve given the dire financial circumstances of the shuttered school and its parent company, InfiLaw Corp. Judge Graham Mullen of the U.S. District Court for the Western District of North Carolina granted preliminary approval Wednesday.

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