Kaplan Pays $1.6M To Settle Whistleblower Suit

Law360, New York (July 22, 2011, 7:26 PM EDT) -- Kaplan Inc. resolved a whistleblower employee's fraud suit Friday, agreeing to pay $1.6 million over allegations that it concealed taking government money while providing worthless surgical technician training.

Former Kaplan employee David Goodstein filed the complaint under seal in 2007, saying Kaplan's Higher Education Division, which took in $580 million in federal money in 2006, covered up that it was contributing to high rates of student loan defaults by recruiting more students to a training program than it could handle. The course required a 500-hour externship,...
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Case Information

Case Title

UNITED STATES OF AMERICA EX REL. DAVID GOODSTEIN V. KAPLAN INC., ET AL.


Case Number

2:07-cv-01491

Court

Pennsylvania Eastern

Nature of Suit

Other Statutory Actions

Judge

ANITA B. BRODY

Date Filed

April 12, 2007

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