I agree that ITT is, to put it nicely, a bad deal.
The cost of attendance is many times that of community colleges and, in fact, is in the neighborhood of Ivy League tuition.
And no, the school is not respected by the employing community for the most part, and credits are not likely to transfer.
As far as a lawsuit goes, you would basically have two options. One would be based in false advertisement, the other in education malpractice.
I don't see a high likelihood of a false advertisement claim against ITT. Their ads state that "credits earned are unlikely to transfer." And while success stories may be limited, I'm sure there are a few, and there's nothing illegal about parading your successes in recruitment efforts, even if you're not representing a likely experience.
Per education malpractice, this is probably also a loser. Poor quality of instruction isn't sufficient. You would pretty much have to be tought things that are completely wrong.
Enrolling with ITT is a bad consumer decision. But in a free market, we are free to make poor choices. The onus is on the consumer to perform whatever research is necessary to ensure that he's not getting a bad deal.
These are just the legal concepts that are jumping out at me after reading the above posts. There may be others that could fit. But as I (and most likely the law) see it, choosing ITT without researching its background and your other options is like buying a used car solely on the representations of the salesman. If you end up with a lemon, you're probably SOL.
Sorry that I couldn't be the bearer of better news. I would still, however, definitely reccommend consulting with an attorney or two and getting some more perspective on this.
Best regards!