New York Paralegal Blog

WASHINGTON -- The Justice Department announced today that the University of Phoenix has agreed to pay the United States $67.5 million to resolve allegations that its student recruitment policies violated the False Claims Act. This case began as a whistleblower action filed in the Eastern District of California under the False Claims Act, which permits private citizens to bring lawsuits for fraud on behalf of the United States and to share in any recovery. Whistleblowers Mary Hendow and Julie Behn, two former University of Phoenix employees, alleged that the university accepted federal student financial aid while in violation of statutory and regulatory provisions prohibiting post-secondary schools from paying admissions counselors certain forms of incentive-based compensation tied to the number of students recruited. Though the United States did not intervene in this action, the Government provided support and assistance to the whistleblowers at many stages of the case, including filin...

PHOENIX – The U.S. Equal Employment Opportunity Commission (EEOC) today announced that Federal District Court Judge Mary H. Murguia has entered a consent decree for nearly $2 million and significant remedial relief to resolve a class religious discrimination lawsuit against the University of Phoenix, Inc., and its parent corporation, Apollo Group, Inc. Apollo Group and the University of Phoenix are one of the largest employers in the Phoenix metropolitan area. In its lawsuit, filed under Title VII of the Civil Rights Act (EEOC v. University of Phoenix, Inc., and Apollo Group, Inc., CV 06-2303-PHX-ROS), the EEOC charged that the University of Phoenix engaged in a widespread practice of discriminating against non-Mormon employees who worked as enrollment counselors in the University’s Online Division. Enrollment counselors at the University of Phoenix are responsible for recruiting students and are largely evaluated based on the number of students they recruit. At present, the Universi...