Students of the American Justice School of Law, a private institution in Kentucky that is seeking accreditation from the American Bar Association, have sued the school’s top administrators, accusing them of mismanagement, the Associated Press reported.

Tom Osborne, a lawyer in Paducah, Ky., who resigned as chairman of the school’s board this month, filed the suit on behalf of himself and the students in federal court on November 17. The lawsuit, which seeks $120-million in damages, alleges that the administrators engaged in criminal activity “to enrich themselves at the expense of the students,” the AP reported. Among other things, the suit alleges that the administrators delayed the distribution of student loans for living expenses so they could invest the funds and earn interest. It also questions whether the school will in fact receive accreditation.

A lawyer for the law school said it would “reply appropriately” to all of the allegations. Paul Hendrick, the school’s founder and president, declined to comment on the lawsuit, but said he was confident the school would receive provisional accreditation next year and full accreditation no more than three years later. Mr. Hendrick is listed among the defendants in the lawsuit.

The school, which opened in 2005, has about 200 students. —Charles Huckabee