January 28, 2005

Justice Department Supports $1-Billion False-Claims Suit Against U. of Phoenix

By GOLDIE BLUMENSTYK

The U.S. Department of Justice may be breathing new life into a whistle-blower lawsuit that seeks to collect about $1-billion from the University of Phoenix, the nation's largest private institution of higher education.

The suit was dismissed in May by a federal district-court judge in California on technical grounds. But the parties who brought the case under the federal False Claims Act have appealed.

Now the Justice Department has filed a friend-of-the-court brief that asks

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