Suits against for-profits: an update

May 27, 2011
U. of Phoenix Hit With New Whistle-Blower Lawsuit Over Recruiting Practices

By Goldie Blumenstyk

Two former admissions recruiters at the University of Phoenix have filed a federal whistle-blower lawsuit that accuses the giant for-profit university of continuing to violate a ban on paying recruiters based on the number of students they enroll, even after the institution paid $78.5-million in December 2009 to settle a long-running lawsuit that made similar charges.

More:http://chronicle.com/article/U-of-Phoenix-Hit-With-New/127714/?sid=at&utm_source=at&utm_medium=en

December 14, 2009
Whistle-Blowers Will Get $19-Million in U. of Phoenix Settlement

By Goldie Blumenstyk

Two former recruiters of students at the University of Phoenix who filed a False Claims Act lawsuit against the for-profit institution will receive $19-million, or nearly 30 percent, of the $67.5-million it is paying the government to settle the case. An additional $11-millon will go to the recruiters' lawyers, according to terms of the settlement, which were made public on Monday.

More:http://chronicle.com/article/Whistle-Blowers-Will-Get/49490/

U.S. Government to Join in Whistle-Blower Lawsuit Against For-Profit College

May 2, 2011, 3:00 pm

In a rare move, the U.S. Department of Justice will join in a whistle-blower lawsuit brought by a former employee of a college owned by the Education Management Corporation, which is accused of illegally obtaining federal student aid by paying its admissions recruiters commissions based on the number of students they enrolled. The company, which operates Argosy University, South University, Brown Mackie Colleges, and the Art Institutes, also disclosed on Monday that it expected several states to join the lawsuit as well. According to Bloomberg News, the suit, which is still under court seal in Pittsburgh, is different from another whistle-blower suit filed against the company by a former South University employee.
More: http://chronicle.com/blogs/ticker/u-s-government-to-join-in-whistle-blower-lawsuit-against-for-profit-college/32652