DOJ Sets FCA Sights on Private-Sector Colleges
Client Alert | 1 min read | 09.05.12
On August 30, the Justice Department intervened and filed an FCA complaint against ATI Enterprises, Inc., which operates private-sector colleges, alleging that ATI knowingly misrepresented its job placement statistics to maintain its state licensure and, thus, its eligibility for federal financial aid, knowingly enrolled under-qualified students, and fraudulently kept students enrolled despite insufficient attendance and poor grades. DOJ's announcement follows other recent high profile cases in the higher education arena, including US ex rel. Oberg v. Ky. Higher Educ. in June (in which the Fourth Circuit considered whether corporate entities created by states to provide higher education financing, accused of making false claims to DOE, were "persons" subject to FCA liability) and Cuccinelli v. Univ. of Va. in March (in which the Virginia Supreme Court held that UVA was not a "person" or "corporation" under the Virginia state-equivalent FCA).
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Following federal lawmakers’ initiative to lower prescription drug prices under the Inflation Reduction Act of 2022, several states have taken similar steps to limit certain drugs’ prices. Drug affordability for consumers is a top priority for federal and state lawmakers and regulators because it is a bipartisan issue that directly impacts consumers’ wallets. With negotiations between the federal government and drug manufacturers over 10 drugs’ prices for Medicare beneficiaries well underway under the Inflation Reduction Act, 11 states, including Maryland and Colorado, have created drug affordability review boards to more directly tackle rising prices for both brand and generic drugs.[1] And another 12 states have pending legislation to create these boards.[2]
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New FAR Part 40 to Address Supply Chain and Information Security Requirements
