8th Circ. Nixes Subsidy Fraud Suit V. Nelnet, Others

Law360, New York (May 5, 2011, 6:22 PM EDT) -- The Eighth Circuit on Thursday threw out a whistleblower suit brought by a former Nelnet Inc. loan adviser claiming the student lender, Citigroup Inc. and JPMorgan Chase & Co. conspired to submit false claims to the U.S. government.

Plaintiff Rudy Vigil had not properly stated a False Claims Act violation because he had not identified specific claims that Nelnet submitted to the U.S. Department of Education based on loans it secured through alleged Federal Family Education Loan Program violations, the Eighth Circuit ruled.

"The complaint does...
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