Education Management Suit Brought on Behalf of 11 States
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A whistleblower complaint against Education Management Corp., the second-largest chain of U.S. for-profit colleges, was brought on behalf of 11 states and the District of Columbia, according to court records unsealed today.
The suit alleges that the company illegally paid recruiters based on the number of students they enrolled. The U.S. Justice Department joined the suit, Education Management said yesterday. Employees who signed up the most students were rewarded with all-expense-paid trips to resorts in Las Vegas and Mexico, according to the suit in federal court in Pittsburgh.