InfiLaw and Florida Law School Win Referral of Student Loan Case
InfiLaw Corporation, InfiLaw Holding LLC and the Florida Coastal School of Law were dismissed from a False Claims Act lawsuit alleging that they had falsely certified compliance with US Department of Education loan requirements to students.
The defendants requested the dismissal of the claims on September 29, saying the claims against them were “indistinguishable” from the claims against another defendant, Sterling Capital Partners LP, which obtained the dismissal of the lawsuit on 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 case on Thursday.
BarBri Inc. was fired on September 15. Arizona Summit Law School LLC and Charlotte School of Law LLC remain the defendants in this case.
Edward Allen, a former Arizona Summit Law School student, 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 have falsified student loan applications under federal student assistance programs.
Allen said the defendants made false claims about adhering to a Department of Education rule that for-profit institutions must derive at least 10% of their income in any given year from other sources. than ministry funds.
The court dismissed the complaints against Sterling and Kaplan because they were based on publicly disclosed information.
Douglas Whitney Law Offices LLC represented the InfiLaw and the Florida Coastal School of Law.
This is the United States ex rel. Allen v. Sterling Capital Partners LP, ND Ill., # 19-cv-7289, 09/30/21.