For-Profit School Co. Says US Overreaching In $11B FCA Suit

Law360, New York (May 30, 2013, 12:58 PM EDT) -- For-profit college chain owner Education Management Corp. on Tuesday slammed a pair of special master discovery recommendations in a false claims whistleblower suit in Pennsylvania over $11 billion in federal funding, saying the government's document requests far exceed the scope of the suit.

While the government's complaint accuses EDMC of violating the Higher Education Act by tying its recruiters' pay directly to the number of students they enrolled, the company claims broad U.S. discovery requests are an attempt to convert the suit into an inquisition into the quality of its programs and a "general referendum on recruiting."

"Plaintiffs seek discovery into...

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