The Supreme Court refuses to dismiss False Claims Act lawsuit against University of Phoenix
The U.S. Supreme Court recently refused to throw out a massive False Claims Act suit against University of Phoenix, that charged the private university with defrauding the government of millions of dollars in federal education loan funds. The suit will proceed to Trial in Sacramento. It will be interesting to see the developments of this high profile education case.
In 2003, a False Claims Act suit was filed by two former employees who alleged that the University of Phoenix, which offers degrees to midcareer workers, violated federal rules that bar giving incentives to employees to recruit students to enroll in the college.
Two years ago, after a probe by the U.S. Department of Education, the University of Phoenix paid the government $9.8 million in compensation to settle the False Act suit.
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