A lawsuit by two former Kaplan Career Institute instructors who alleged that the educational company fraudulently obtained federal funding has settled.
Court documents filed today indicated that the suit by Victoria G. Gatsiopoulos and Dolores A. Howland against Kaplan's ICM Campus was resolved, but attorneys for the two sides said they were not authorized to disclose the terms.
The instructors sued under the False Claims Act in 2006, and the matter was unsealed in 2008. The Department of Justice can intervene in such cases, but has not done so in this matter. The settlement doesn't bar the government from seeking a recovery of funds it paid out due to false claims.
The instructors alleged that ICM inflated its statistics on graduates who accepted jobs in their designated or related fields in order to woo students and meet minimum benchmarks for federal funds. Ms. Gatsiopoulos said she was fired for complaining about the practice.
Rich Lord: email@example.com or 412-263-1542Ka