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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