Kennedy Hodges, L.L.P. Legal Blog

The U.S. Government will recover $78.5 million to settle a Qui Tam action over recruiter pay practices. The University of Phoenix's parent company settled the False Claims Act suit that was brought by a group of former employees in 2003. The plaintiffs theory was that the University wrongly rewarded enrollment counselors largely on enrollment numbers, bilking the government out of millions of dollars. The plaintiffs will recover $30 million, including $11 million in attorneys' fees. Dawn Gilbertson, The Arizona Republic, 12/15/09

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