Thread regarding Education Management Corporation layoffs

EDMC and False Claims Act Lawsuit

http://www.post-gazette.com/business/2014/02/23/Under-False-Claims-Act-whistleblowers-get-their-share-of-billions/stories/201402230084.....Now Pittsburgh is starting to become a bigger player in the multibillion-dollar False Claims Act arena, reeling in $9.95 million in recoveries for the government since 2010. With the settlement in November of Ms. Lyttle's claim, and a potential 2015 trial in a federal lawsuit against Downtown-based Education Management Corp., Pittsburgh is now considered friendly territory for whistleblower-filed cases.

"It's extremely unusual for a district of medium size, like the Western District of Pennsylvania, to become a national player in handling cases of this scope," said attorney Harry Litman, who was Pittsburgh's top federal prosecutor from 1998 to 2001, and now works as a private lawyer on False Claims Act cases, including one against EDMC. He said that Mr. Hickton's "office has become a national leader in the practice."

That's encouraging to attorneys who specialize in pursuing those who rip off Uncle Sam.

There are "large sums of money that the taxpayers are providing to the government to provide services," said Downtown attorney Andrew Stone. "We know there's no shortage of fraud."

by
| 607 views | | 3 replies (last ) | Reply
Post ID: @OP+ukTVKde

3 replies (most recent on top)

Thanks Camden Kid, good post, makes sense

by
| | Reply
Post ID: @1b5R+ukTVKde

All the for-profit schools are backed by large banks and hedge funds. EDMC, for example, is backed by Goldman Sachs, one of the most powerful corporations in the world. Corinthian Colleges, one of the most vulnerable corporations, is backed by Wells Fargo. It's difficult to know which big FPE (for-profit educator) will be the first to fail--and it may be a few years before the first one goes down. Much of their demise will depend on how much their backers are willing to lose. I believe that financial insiders are concerned that if one big FPE fails, others may follow. There are so many steps along the way, and there is still more cash all the FPEs can burn, as long as they have the banks backstopping them. That said, bankruptcy does not mean that a company disappears; it may only mean some consolidation.

by
| | Reply
Post ID: @1gR7+ukTVKde

Camden Kid, which for-profit organization will disintegrate first? Many appear to be on their knees but I am not seeing anybody go under?

by
| | Reply
Post ID: @7vh+ukTVKde

Post a reply

: