Apollo Group Inc., known for its popular University of Phoenix (online) brand, has agreed to pay a total of $78.5 million in a settlement of a False Claims suit.
Apollo was alleged to have paid college recruiters in a compensation structure based solely on how many students enrolled. That type of compensation is illegal if it is the only means of determining compensation. The settlement consists of $67.5 million in penalties to the US, and $11 million in lawyer’s fees/qui tam provisions to two private whistleblowers. Though the suit has raged on since 2003, it is not the only one Apollo has faced. In 2004, the company settled a similar suit for $9.8 million. This current suit was originally filed in 2003, but was dismissed twice in 2003 and 2004, until it was finally reinstated in 2006.
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