For-Profit College Co. Can't Duck Whistleblower's FCA Suit

By Lance Duroni (May 31, 2013, 3:57 PM EDT) -- A Pennsylvania federal judge on Friday allowed a whistleblower suit accusing for-profit college giant Education Management Corp. of defrauding the federal government to proceed, agreeing with a magistrate judge that the case should not be dismissed.

In a short opinion, U.S. District Judge Terrence F. McVerry overruled the Pittsburgh-based company's objections to the October magistrate report, which held that several claims made by a former EDMC admissions officer are strong enough to go forward, including that the company lied to students about its programs' accreditations and their job prospects.

EDMC — one of the largest providers of for-profit university education in...

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