False Claims Act/Qui Tam

This blog is about qui tam, a  lawsuit brought under the False Claims Act by a private plaintiff on behalf of the Federal or State Government (rather than by the Government itself). The False Claims Act was originally enacted by Congress in 1863, as a response to widespread abuses by government contractors against the Union Army during the Civil War. The qui tam provisions are now used widely and this blog is intended to keep readers up to date with all qui tam related news and to provide commentary when warranted.  This blog also contains an array of laws and regulations concerning qui tam set out in an easy to read format.

University of Phoenix Gets an “F” for Fraud Allegations that now stand

by Nolan and Auerbach on September 7, 2006

The Ninth Circuit Court of Appeals in San Francisco, California reinstated a federal qui tam case filed by two former employees of the University of Phoenix alleging that the school enrolled unqualified students to get federal funding. Recruiters were rewarded based on the number of students they enrolled.  The lower court had previously dismissed the suit stating that the False Claims Act did not cover such conduct. Of note was the fact that the United States Department of Justice filed an amicus brief stating that the ruling by the district court “could impair enforcement of the False Claims Act ”.  While a federal appeals court in New Orleans had previously dismissed three cases that were similar to the University of Phoenix case, a Chicago federal court of appeals ruled consistently with the Ninth Circuit.

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