Apollo Group Inc. Praises Government Decision on Qui Tam Lawsuit.Business Editors PHOENIX--(BUSINESS WIRE)--Sept. 4, 2003 Apollo Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : APOL APOL Asia Pacific Online APOL Alternate Person on Line )(NASDAQ: UOPX) today reported that the U.S. government has decided that it will not intervene in a qui tam action qui tam action (kwee tam) n. Latin for who as well, a lawsuit brought by a private citizen (popularly called a "whistle blower") against a person or company who is believed to have violated the law in the performance of a contract with the government or in violation filed against the company in the United States District Court for the Eastern District of California The U.S. District Court for the Eastern District of California is composed of six divisions. The Bakersfield division has jurisdiction over certain cases in Inyo and Kern counties and on federal lands and National Parks. . The company was notified of the action on Aug. 29, 2003 by the plaintiffs counsel and expects to be served with this civil complaint shortly. This legal action was filed by two current employees on behalf of themselves and the federal government. A qui tam action is a civil lawsuit brought by one or more individuals (a qui tam "relator The individual in whose name a legal action is brought by a state; the individual who relates the facts on which an action is based. The relator is the individual upon whose complaint certain writs are issued. ") for an alleged submission to the federal government of a false claim for payment. A qui tam action is always filed under seal and remains under seal until the U.S. Department of Justice decides whether to intervene in the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . When the government declines to intervene in a qui tam action, as it has done in this case, the relators may elect to pursue the litigation on behalf of the government and, if they are successful, receive a portion of the federal government's recovery. Todd S. Nelson, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "We are pleased with the government's decision not to intervene in this ill-advised action. If need be, we will vigorously defend ourselves as we do not believe the allegations have any basis in fact or law." Nelson further commented, "We do not expect that the ultimate cost to resolve this matter will have a material adverse effect on our financial position, results of operations, or cash flows." The qui tam action alleges, among other things, violations of the False Claims Act 31 U.S.C. Section 3729(a)(1) and (2), by University of Phoenix for submission of a knowingly false or fraudulent claim for payment or approval, and knowingly false records or statements to get a false or fraudulent claim paid or approved in connection with federal student aid programs, and asserts that University of Phoenix improperly compensates its employees. A number of similar qui tam actions Civil actions maintained by private persons on behalf of both themselves and the government to recover damages or to enforce penalties available under a statute prohibiting specified conduct. involving employee compensation have been brought over the past couple of years against other providers of higher education programs. The company understands that the government has declined to intervene in all of these lawsuits and that at least one of these lawsuits was recently dismissed with prejudice by a Federal District Court in Texas. Apollo Group Inc. has been providing higher education programs to working adults for more than 25 years. Apollo Group Inc. operates through its subsidiaries The University of Phoenix Inc., Institute for Professional Development, The College for Financial Planning Institutes Corp., and Western International University Inc. The consolidated enrollment in its educational programs makes it the largest private institution of higher education in the United States Higher education in the United States refers to colleges and universities within the United States. Overview The American university system, like the American educational system in general, is highly decentralized because the U.S. . It offers educational programs and services at 67 campuses and 118 learning centers in 37 states, Puerto Rico and Vancouver, British Columbia. Combined degree enrollment was 187,500 students as of May 31, 2003. For more information about Apollo Group Inc. and its subsidiaries, call 800-990-APOL or visit Apollo on the World Wide Web at http://apollogrp.edu. |
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