May 3, 2011
An incentive compensation qui tam action filed against EDMC in 2007 was unsealed today after the Department of Justice (“DOJ”) filed a notice of intervention. This action by DOJ is both disappointing and disturbing because DOJ had declined to intervene in each and every one of the previous 25 or so incentive compensation qui tam actions brought against schools.
As you can see from a review of the relators’ complaint, the factual allegations and claims set forth in the EDMC complaint are almost identical to the allegations and claims in almost all of the prior actions — actions in which DOJ declined to intervene. In fact, as will become clear as the case proceeds, there are several compelling facts and issues that, in our opinion, make this particular case an even less likely or attractive candidate for DOJ intervention.
There are several other aspects of this decision that might be of interest:
Clearly, relators’ counsel will attempt to use this intervention decision to convince DOJ to intervene in other cases, both those already filed and those to be filed in the future. We will continue to update you on the progress of this matter as it proceeds.
Timothy Hatch (213-229-7368, firstname.lastname@example.org)
Marcellus McRae (213-229-7675, email@example.com)
James Zelenay (213-229-7449, firstname.lastname@example.org)
Wayne Smith (949-451-4108, email@example.com)
Joseph Busch (949-451-3898, firstname.lastname@example.org)
Nick Hanna (949-451-4270, email@example.com)
Kristopher Diulio (949-451-3907, firstname.lastname@example.org)
Jessica Boschee (949-451-3857, email@example.com)
Douglas Cox (202-887-3531, firstname.lastname@example.org)
Michael Bopp (202-955-8256, email@example.com)
Amir C. Tayrani (202-887-3692, firstname.lastname@example.org)
Nikesh Jindal (202-887-3695, email@example.com)
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