No, I don't work for the DoE, but as a tutor and test prepper, I do work with many families who go through this process each year. I have had families choose only one or two schools and not get in, but I have also had families do the same thing and get in. Given what you've heard, this should not have happened. Furthermore, even though the DoE is no stranger to lawsuits, I can only imagine the number of suits they would be facing if the rumors were true--enough to go bankrupt, I'd imagine. Still, you should do what is most comfortable for you.