Disclosure: I worked at Flatiron School from 2014-2016.
I just want to point out the the numbers in the audited jobs report were never 'phony'. The report, which was available for download long before the settlement, clearly shows the %s of full-time salaried, full-time contract, part time and self employment used for the totals.
My understanding of the settlement is that the AG's office was upset that the quoted numbers in advertisements did not make the type of employment clear and did not make it clear that the average salary included only the employed students who took a full-time salaried position.
This was certainly a misleading aspect of the advertising, but a prospective student who downloaded and read the report would have been able to see these numbers clearly.