9th Circ. Revives FCA Suit Against School Operator

Law360, New York (August 12, 2011, 6:07 PM EDT) -- The Ninth Circuit on Friday revived a False Claims Act suit against Corinthian Colleges Inc., saying a lower court should have allowed two ex-workers to amend their whistleblower complaint accusing Corinthian of lying to obtain billions in federal education funds.

Nyoka Lee and Talala Mshuja, respectively a former employee and former independent contractor with Corinthian, filed their suit in March 2007 claiming Corinthian violated conditions for receiving Higher Education Act funds by providing bonuses based on recruitment numbers. Corinthian received around $500 million a year while...
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