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Career Education Settles False Claims Suit

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February 23, 2017

Career Education Corp. on Wednesday announced that it had settled a false claims lawsuit with private plaintiffs. The suit against the for-profit chain and its American InterContinental University was originally filed in 2008.

The federal government declined to intervene in the case. However, Career Education said it would pay the United States $10 million under the terms of the settlement. Under a separate settlement, the company said it would pay $22 million to the lawyers who represented the plaintiffs.

Career Education did not admit to any violations of law or liability under the settlements.

"[B]y eliminating the distraction caused by this lawsuit, the company’s management can provide more attention to the company’s core operations and its goal of enhancing retention and outcomes for its students," Career Education said in a corporate filing.

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