Inside Higher Ed: $78.5M Settles U. of Phoenix Case
The owner of the University of Phoenix has agreed to pay $67.5 million to the federal government and another $11 million in legal fees to two former admissions officials who six years ago accused the higher education company of illegally paying its recruiters based on how many students they enrolled.
The Apollo Group’s announcement appears to bring to an end a long-running legal fight that at points seemed poised to cost the country’s largest postsecondary education provider hundreds of millions if not billions of dollars — but ultimately cost it much less.
The Chronicle: Whistle-Blower Case Against U. of Phoenix Is Settled
The parent company of the University of Phoenix said on Monday that it would pay $67-million to the U.S. government, plus $11-million in lawyers’ fees, to settle a 2003 “whistle-blower” lawsuit by two former student recruiters, who accused the company of obtaining federal student aid under false pretenses. The company, Apollo Group Inc., noted that the settlement, first discussed in October, includes no admission of wrongdoing.
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