For-Profit Trade School Can't Dodge FCA Suit

Law360, New York (April 11, 2013, 5:46 PM EDT) -- A California judge on Thursday largely denied a move by for-profit Institute of Technology Inc. to toss a False Claims Act suit alleging the vocational school misrepresented itself while seeking $38 million annually in claims from the U.S. Department of Education, finding the relators have properly alleged their case.

U.S. District Judge Anthony W. Ishii held that the qui tam action brought by former employees at IOT’s Clovis, Calif., campus, is sufficient to plead a violation of the FCA, as it alleges a false statement or...
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