Adtalem Urged to Freeze Walden Deal While U.S. Probe Pending

Adtalem Global Education Inc. is being urged by two investors to halt its $1.5 billion acquisition of Walden University until the U.S. Justice Department completes an investigation of the for-profit university.

Engine Capital and Hawk Ridge Partners, which collectively own a 3.9% stake in Adtalem, said in a letter to the company’s board Monday that they believe it is understating the severity of potential violations involving Walden’s nursing program, noting that four agencies are involved in the investigation.

The duo said 18 of 26 for-profit universities it found to have been investigated by the Justice Department faced sanctions or ...