Whistleblower Suit Against EDMC Should Proceed, Judge Says

By Richard Vanderford (October 22, 2012, 8:28 PM EDT) -- A federal judge on Monday said a whistleblower lawsuit accusing for-profit university giant Education Management Corp. of defrauding the federal government by pushing students into pricey government loans should go forward, though she recommended it be pared down.

U.S. Magistrate Judge Cynthia Reed Eddy said that several allegations made by Jason Sobek, a former EDMC associate admissions officer, are strong enough to go forward, including claims that the Pittsburgh, Pa.-based education company lied to students about its programs' accreditations and their job prospects.

Allegations that EDMC lied about its total cost to students should be dismissed, though, Judge Eddy said....

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