InfiLaw Corporation, InfiLaw Holding LLC, and Florida Coastal School of Law won dismissal from a False Claims Act suit alleging they falsely certified compliance with U.S. Department of Education student loan requirements.
The defendants moved to dismiss the claims Sept. 29, asserting the claims against them were “indistinguishable” from claims against another defendant, Sterling Capital Partners LP, which won dismissal from the suit July 21.
Judge Ronald A. Guzman of the U.S. District Court for the Northern District of Illinois agreed, granting the motion in a one-page docket entry on Thursday.
BarBri Inc. was dismissed Sept. 15. Arizona Summit Law School LLC and Charlotte School of Law LLC remain defendants in the case.
Edward Allen, a former student at Arizona Summit Law School, alleged in his November 2019 complaint that Sterling, Kaplan Inc., BarBri, three for-profit law schools, and InfiLaw Corp. engaged in a scheme to submit or cause to be submitted false claims for student loans from federal student aid programs.
Allen said the defendants made false statements about compliance with a Department of Education rule that for-profit institutions must derive at least 10% of their revenue in a given year from sources other than department funds.
The court dismissed claims against Sterling and Kaplan because they were based on publicly disclosed information.
Douglas Whitney Law Offices LLC represented the InfiLaw and Florida Coastal School of Law.
The case is United States ex rel. Allen v. Sterling Capital Partners LP, N.D. Ill., No. 19-cv-7289, 9/30/21.
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