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University of Phoenix settles qui tam suit for $78.5 million

By Phillips & Cohen LLP

The University of Phoenix has agreed to pay $78.5 million to resolve allegations that it violated the False Claims Act. The suit, which was pursued by the qui tam plaintiffs after the government declined intervention, alleged that the university defrauded the government by paying counselors incentives for enrolling students. Under Title IV of the Higher Education Act, universities that qualify for student aid are barred from paying incentives to recruiters to boost enrollment.

The Recorder said that settlement is notable because in qui tam cases where the government declines to get involved the win rate is very low.

Full post as published by False Claims Act - Qui Tam on December 22, 2009 (boomark / email).