Government Inaction Fatal to False Claims Case, SCOTUS Told

The U.S. Supreme Court should review an education fraud dispute between a San Francisco art school and four whistleblowers to clarify the False Claims Act, the school said in its petition.

The U.S. Court of Appeals for the Ninth Circuit erroneously ruled that the whistleblowers may proceed with claims that Academy of Art University defrauded the Department of Education for violating an incentive compensation ban for admissions officers, Academy of Art said.

Academy of Art improperly used an incentive policy under which admissions officers could receive a salary increase of up to $30,000 for high enrollment numbers, the whistleblowers say. ...