Wednesday, August 10, 2011

For-Profit Educator Is Sued

WASHINGTON—The Justice Department and four states on Monday sued Education Management Corp., alleging the operator of for-profit colleges falsely certified that it was eligible to participate in federal student loan programs.

The legal complaint came in a false-claims lawsuit that was originally filed by two of the company's former employees.

A federal judge in Pittsburgh, where the company is based, unsealed the lawsuit in May after the Justice Department indicated that it planned to intervene in the case.

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