The nation’s largest for-profit university, The University of Phoenix, agreed to a $78.5 million settlement based on two whistleblowers’ False Claims Act lawsuit.
The suit alleges the University defrauded the U.S. Department of Education by obtaining federal student loan and Pell Grant funds based on false statements.
The University previously paid $9.8 million to the Department of Education in 2004 to resolve administrative claims that it was paying improper incentive compensation to its recruiters.
The settlement includes an $11 million payment to the two whistleblower plaintiffs for attorney fees.