U. Of Phoenix Settles Qui Tam Suit For $78.5M

Law360, New York (December 14, 2009, 6:29 PM EST) -- The University of Phoenix on Monday agreed to pay $78.5 million to settle a False Claims Act suit accusing the for-profit university of illegally accepting government funds while paying recruiters based on the number of students they enrolled.

The university's parent company, Apollo Group Inc., and attorneys for the plaintiffs announced the settlement after filing a joint stipulation of dismissal in the U.S. District Court for the Eastern District of California.

Under the terms of the settlement, the company will pay $67.5 million to the United...
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