Phoenix Business Journal: “Apollo Group Inc. announced Monday that it will pay $78.5 million to close the door on a false claims lawsuit filed in 2003 against its subsidiary University of Phoenix. Phoenix-based Apollo said it is not admitting any wrongdoing or noncompliance with the law and notes, the regulations at issue in this case were unclear and inconsistent. The lawsuit was filed by two private plaintiffs as a qui tam action, which allows an individual with information about a fraud to sue on behalf of the federal government.”
See “Qui Tam Suit Against University Nets $78.5 Million Settlement,” which starts:
A team of Bay Area plaintiffs 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 Monday. 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 didn’t intervene, said Eric Havian, a qui tam expert and partner with Phillips & Cohen in San Francisco who was not involved in the case.