San Francisco Art Academy, Whistleblowers Settle Fraud Claims

Four whistleblowers and the Academy of Art University in San Francisco have settled a nearly 12-year False Claims Act suit alleging the university obtained funds from the U.S. Department of Education by falsely promising not to reward admissions officers for enrolling a higher number of students.

The parties filed a stipulation of dismissal Nov. 5 with the U.S. District Court for the Northern District of California.

Federal prosecutors consented to the dismissal.

Counsel for the parties didn’t immediately respond to a request for comments. The terms of the settlement weren’t made available.

The four whistleblowers alleged in their December 2009 ...