Monday, August 15, 2011

Breaking: False Claims Act Being Filed Against Corinthian College

On August 9, 2011, AEM reported that the Department of Justice and four states filed a suit against Education Management Corporation (EDMC).

Last Friday, as reported by IHE, a similar lawsuit was filed against Corinthian College.

Here's a notable point from that article:

While the administration passed up an opportunity to join the Corinthian lawsuit in 2009, the ruling by the U.S. Court of Appeals for the Ninth Circuit creates another chance for the government to do so, and creates at least the possibility that the Obama administration will make such interventions a trend (my emphasis), using litigation as an additional tool in its attempt to rein in abuses in the for-profit sector.
If that is the case, I must applaud the administration. I certainly hope this will become a trend.

So . . . perhaps this is a good sign? Perhaps the government will stand up to these pernicious institutions that defraud students? One can only hope . . .

Related Links

"The Department of Justice and Four States Suing the Education Management Corporation (EDMC)," AEM (August 9, 2011)

"UPDATE: BREAKING! Whistleblower David Goodstein Slams Kaplan and Wins!," AEM (July 22, 2011)

"Big News: U.S. Government Joins Suit Against Education Management Corp. (EDMC)," AEM (May 9, 2011)


Anonymous said...


I think you meant 08/09/11. Not trying to be nit picky, but I thought (for a second) that another lawsuit had been filed a year ago.

C. Cryn Johannsen said...

No problem. Thanks for pointing out the error. It's been fixed!