US Bank Sues Loan Cos. Over $7M FCA Settlement

Law360, New York (June 3, 2011, 5:53 PM EDT) -- U.S. Bank NA filed suit in Minnesota on Thursday against two student loan companies alleging they were improperly trying to get trusts that the bank manages to pay $7 million in legal and settlement costs for a False Claims Act whistleblower suit.

The companies, the Student Loan Finance Corp. and its subsidiary Education Loans Inc., settled a whistleblower's allegations that the two lenders and others collected improperly inflated interest rate subsidies from the government. SLFC and EdLinc agreed to pay about $3 million to settle the...
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