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June 8, 2015In the News

Michael Best Higher Ed Client Defeats False Claims Act Suit

Law360

Law360 featured Michael Best, whose Higher Education Client recently defeated a False Claims Act suit, in the article "7th Circ. Won't Revive FCA Suit Against Wis. College" on June 8, 2015.

"A for-profit Wisconsin college and its parent, Career Education Corp., again defeated a False Claims Act suit on Monday, after a Seventh Circuit panel ruled against reinstating allegations the school lied to the federal government to obtain grants and loans for students.

The panel ruled that allegations of Title IV violations like improper employee bonuses tied to securing admissions and financial aid did not qualify as falsified statements, because those Title IV requirements were not “conditions of payment” under the FCA. Agreeing with the lower court, the panel also said that the relator and the government had not provided evidence of fraud to induce them to enter into the payment agreement in the first place.

'Absent evidence of fraud before entry, non‐performance after entry into an agreement for government subsidies does not impose liability under the FCA,' the opinion said."

To read the full article, click here.

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