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Kaplan Settles Whistleblower Lawsuit Regarding False Representations

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Kaplan University and parent company Kaplan Higher Education have agreed pay $1.6 million to settle a whistleblower lawsuit and investigations into the CHI Institute in Broomall Pa. The lawsuit was filed by the former director of education at the Pennsylvania campus, who alleged that Kaplan-owned CHI made false representations about a surgical program, despite an inability to place students in a surgical setting.

The lawsuit prompted a program review by the U.S. Department of Education and investigations by the U.S. Attorney’s Office in Pennsylvania. Kaplan stopped student enrollment in the program in 2008.

Kaplan is currently facing investigations in Florida and at least 10 other states. They are also facing several other lawsuits.

Under the terms of the settlement Kaplan will pay $1.1 million to the U.S. Attorney’s Office with $225,000 going to the plaintiff, the Sun Sentinel reported.

“I hope that lawsuits such as this one will not only help to change the behavior of proprietary institutions such as Kaplan, but lead to a greater awareness of the public, and especially the potential consumers, of the risks presented by many of these programs,” the plaintiff, David Goodstein, said. disclaimer: This article: Kaplan Settles Whistleblower Lawsuit Regarding False Representations was posted on Tuesday, July 26th, 2011 at 6:54 pm at and is filed under Fraud Lawsuits.

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