Kaplan Settles Texas Whistleblower Lawsuit

Kaplan Higher Education, a for-profit chain, agreed to a $1.3 million settlement with the U.S. Attorney for the Western District of Texas.

The civil settlement, reached on Monday, resolves whistleblower allegations that Kaplan employed unqualified instructors at its campuses in Texas, Reuters reported. The agreement did not include a finding of wrongdoing by the company. The for-profit settled to avoid the "expense of protracted litigation," a Kaplan official said in a written statement.

"The suit alleged that Kaplan knowingly requested, received, and retained federal tuition funds for courses taught by individuals who did not meet the minimum requirements established by Texas law," a statement from the U.S. Attorney's office said.

Over $1 million of the settlement will be paid in the form of tuition refunds to 289 students.

 

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Reuters

http://www.reuters.com/article/2015/01/05/us-usa-texas-kaplan-idUSKBN0KE1T220150105