Grand Canyon University Must Face Compensation Ban Fraud Suit

A whistleblower adequately alleged that Phoenix-based Grand Canyon University obtained funds from the federal government by falsely promising not to reward counselors for enrolling students, in violation of the False Claims Act, a federal district court said.

Denying the school’s motion for summary judgment, Judge William G. Young of the US District Court for the District of Massachusetts said in a Tuesday order that there’s no dispute that Grand Canyon and its leaders were aware of the ban.

Factual disputes exist as to whether they knowingly misled the government by failing to disclose violations of the Higher Education Act, which ...