Cases & Deals

Education Management Corporation defends federal and state False Claims Act allegations

Clients Education Management Corporation

Jones Day is defending Education Management Company (EDMC) against a False Claims Act action brought by private relators and joined by the federal government, several states and the District of Columbia. EDMC is one of the nation's largest, for-profit, providers of secondary education. The claims assert that EDMC violated federal regulations by compensating its admissions and financial aid personnel in part based on number of students enrolled. We have filed a motion to dismiss the complaint as factually deficient and legally erroneous. Jones Day is also defending EDMC in investigations by a number of state attorneys general into EDMC's compensation, marketing practices, and educational programs, as well as in Congressional hearings and investigations.

United States of America, et al., ex rel. Washington v. Education Management Corporation, No. 2:07-cv-00461-TFM (W.D. Pa.); Douglas N. Gaer v. Education Management Corp., et al., No. 2:10-cv-01061-NBF-RMC (W.D. Pa.); United States of America, et al., ex rel. Sobek v. Education Management Corp., No. 2:10-cv-00131-TFM-CRE (W.D. Pa.); Stephen Bushansky v. Education Management Corp., No. 2:12-cv-01101-TFM (W.D. Pa.); and Oklahoma Law Enforcement Retirement System v. Nelson, et al., No. GD-12-008785 (Ct. Com. Pl.)

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