A federal judge denied a motion to dismiss a False Claims Act case against Kaplan University, one of the largest for-profit colleges in the United States.  The whistleblowers, former instructors for Kaplan, alleged that the college had manipulated student academic records and job-placement statistics, paid incentives to recruiters based on enrollment numbers, and violated the Higher Education Act’s 70 Percent Rule, which requires schools eligible for federal funds to maintain at least 70 percent graduation and job placement rates.  The district court, however, only upheld the 70 Percent Rule claim.

A second False Claims Act suit against Kaplan was filed by three other employees in 2007.  Their claims included grade inflation to meet academic progress standards, bonuses for recruiters based solely on student enrollment, discrimination against disabled employees in violation of the Rehabilitation Act, and violation of the rule which forbids institutions from receiving more than 90 percent of its revenue from federal funds for tuition and student fees.  The District Court sustained the Rehabilitation Act allegations and claims that Kaplan took retaliatory actions against one of the whistleblowers, but dismissed the other claims.

Read the entire article, “Kaplan Colleges Can’t Kill False Claims Suits”