Whistleblower Suit Against EDMC Should Proceed, Judge Says

Law360, New York (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...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

UNITED STATES OF AMERICA et al v. EDUCATION MANAGEMENT CORPORATION et al


Case Number

2:10-cv-00131

Court

Pennsylvania Western

Nature of Suit

Other Statutory Actions

Judge

Terrence F. McVerry

Date Filed

January 28, 2010

Law Firms

Companies

Government Agencies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.