FCA Suit Against School Operator Survives Minus New Claims

Law360, New York (April 20, 2012, 2:55 PM EDT) -- A California federal judge on Thursday kept in place the original framework of a False Claims Act suit accusing Corinthian Colleges Inc. of lying to obtain billions in federal education funds, but dismissed new claims of five more years of illegal activity.

Nyoka Lee and Talala Mshuja, former employees of the for-profit school operator, allege Corinthian violated conditions for receiving Higher Education Act funds by providing bonuses based on recruitment numbers. Corinthian received about $500 million a year while routinely paying recruiters bonuses of 2.5 percent...
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