US: Suit against university nets $78.5 million settlement

20 December 2009

Lawyers struck a $78.5 million deal in a long-running false claims suit that accused the University of Phoenix of rewarding recruiters for enrolling students, according to a settlement agreement announced on Monday, writes Kate Moser for The Recorder.

The agreement, which includes $11 million in attorney fees for the plaintiffs, is among the largest settlements ever of a False Claim Act fraud case in which the government did not intervene, said Eric Havian, a qui tam expert and partner with Phillips & Cohen in San Francisco who was not involved in the case.

Former University of Phoenix enrolment counselors Mary Hendow and Julie Albertson filed the suit in 2003, accusing the university of defrauding the government by paying counsellors incentive payments for enrolling students. Under Title IV of the Higher Education Act, universities that qualify for student aid are barred from paying incentives, like commissions and bonuses, to recruiters to boost enrolment.
Full report on The Recorder site

Receive UWN's free weekly e-newsletters

Sponsored Article

Getting to net zero, one community at a time

University of Victoria staff

Accelerating Community Energy Transformation is a University of Victoria-led collaborative initiative that brings together over 40 partners, including Indigenous knowledge keepers and community leaders, to create innovative place-based solutions for energy system transformation.

Promoted by the University of Victoria.

Sponsored Article

Africa pays a premium for global climate change sluggishness

Stellenbosch University staff

Africa needs to stop paying the price for the rest of the world’s recalcitrance to act fast enough in response to the irrefutable conclusions that climate change is real and that the impact of global warming could be devasting, says Professor Guy Midgley, interim director of the School for Climate Studies at Stellenbosch University, South Africa.

Promoted by Stellenbosch University.

Sponsored Article

Innovations to ensure energy savings in a hot, arid climate

UAE University staff

Researchers from the United Arab Emirates University have shown that the potential benefits of building energy savings and a cooler indoor environment, as well as improved cooling effect on air temperature at pedestrian level, strongly indicate that a cool roof with high solar reflectance and albedo is a promising strategy for buildings in regions with hot, arid climates.

Promoted by United Arab Emirates University.

Sponsored Article

A new global university ranking with an ethical mission

Aftab Dean

A new university ranking system aims to serve as a catalyst for positive transformation in higher education, ensuring that universities create an environment grounded in integrity and sustainability that inspires and supports students and staff in the development of novel solutions to global challenges.

Promoted by Globethics.net.

Sponsored Article

SDG progress report launches university into new territory

University of Pretoria staff

In the publication of its first progress report on its contribution to the Sustainable Development Goals, the University of Pretoria is navigating new territory at the same time as it is acknowledging its clear stewardship role in protecting the environment and biodiversity.

Promoted by the University of Pretoria.