November 5, 2004
ITT Wins a Round in Ex-Recruiters' Suit
A federal appeals court in Texas has affirmed a lower-court ruling that dismissed a "false claims" lawsuit against ITT Educational Services Inc. The case has been pending since late 1999.
The lawsuit, filed by two former recruiters for ITT, alleged that the higher-education company had violated federal law by compensating its recruiters based on the number of students they enrolled, and that as a result, the millions of dollars in federal student grants and loans that made their way to
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