Apollo Group Inc. Resolves University of Phoenix False Claims Act Case

Phoenix - Phoenix-based Apollo Group Inc. has entered into an agreement to resolve the False Claims Act lawsuit filed against its subsidiary University of Phoenix in March 2003, relating to incentive compensation for recruiters.

Phoenix - Phoenix-based Apollo Group Inc. has entered into an agreement to resolve the False Claims Act lawsuit filed against its subsidiary University of Phoenix in March 2003, relating to incentive compensation for recruiters. Under the terms of the agreement, Apollo has agreed to pay $67.5 million to the United States. In a separate agreement, Apollo also agreed to pay $11 million in attorney fees to the plaintiffs, two former employees who alleged the company violated a federal ban on paying recruiters soley based on the number of students enrolled. According to the agreement, Apollo Group does not acknowledge, admit or concede any liability of wrongdoing as a result of the settlement. "This agreement not only brings closure to a long-running dispute and enables [Apollo Group] to avoid the uncertainty and further expense associated with protracted litigation, it opens the door for a more constructive partnership with our lead regulator, the U.S. Department of Education," said Charles B. Edelstein, co-chief executive officer of Apollo Group, in a statement.


 

 

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