Judge Flunks Part Of $11B FCA Suit Against College Co.

Law360, New York (May 14, 2012, 5:21 PM EDT) -- A Pennsylvania federal judge on Friday threw out a small portion of an $11 billion False Claims Act suit against for-profit college chain owner Education Management Corp., ruling the company's compensation plan was not illegal as written, but could still be in violation as implemented.

A pair of former admissions officers at EDMC schools and federal and state government intervenors have accused EDMC of tying its recruiters' pay directly to the number of students they enrolled, in violation of the Higher Education Act. In applying for...
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