American InterContinental University has been sued in a whistleblower lawsuit filed in federal court in Atlanta, Georgia. The lawsuit, filed last year and unsealed in July, was brought by the University’s former vice president for academic affairs/acting president, a former academic adviser, a former human resources director, and an official still working in the registrar’s office at one of the school’s locations in suburban Atlanta. The suit alleges that American InterContinental violated the federal False Claims Act by tying the compensation of admissions officers to the number of students they enroll and by admitting students who failed to meet basic minimum academic requirements. American InterContinental ‘s accrediting agency, The Southern Association of Colleges and Schools, had already placed the for-profit school on probation from 2005 to 2007 because of similar concerns.
The federal government decided not to join the lawsuit. In such circumstances, where a False Claims Act suit proceeds without participation by the Justice Department, the whistleblower is entitled to a larger share of any recovery obtained on the government’s behalf.
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