This is a step by step, cookbook of qui tam legal stuff for a whistleblower. Really quite interesting. The part under the heading If the government declines the case (does not intervene as in this apol qui tam case) is very interesting. It is both good news and bad news. It says, "Often the company will think that your case and your will is weak because the government did not intervene and will try to obfuscate and delay until your attorney runs low on resources."
here is the complete and thorough explanation of qui tam (and how to pronounce it too). the summary is that a private citizen can sue a government contractor as if the citizen were the government (attorney general), and that citizen can recover money damages as if that citizen were the govt. this sounds like a trial lawyer's dream law from a civil law stand point.
If you see apol moving down sometime in the future in a nice managed looking way and then sometime later UBS downgrades apol, you will know that UBS has stopped supporting the share price the way UBS has been doing in the past.
"Apollo Group comments on 'whistle blower' suit (APOL) 64.19: Last night, co reported that the U.S. government has decided that it will not intervene in a qui tam action filed against the co that alleges University of Phoenix (UOPX) knowingly submitted false or fraudulent claims for payment or approval. In a note this morning, UBS says that while it doubts this action will have any material impact on Apollo's fundamentals, firm expects it will lead to an overhang in the near-term."
"She" is just a person (whistleblower) who alleges the univ. of phoenix committed fraud by submitting inflated or false billings/charges to the us government for some of the u of phoenix educational courses. Remember the hmo frauds with medicare billings to the government? It's the same type of accusation. If it's true, it is a problem. Some of the hmo guys went to jail.
My UNDERSTANDING is that APOL is pretty on the ball on the way they handle Title IV AND how the compensate the sales errr enrollment people. They've addressed similar issues before re: compensation. But hell, I've been wrong before.
Agreed, if true, it could be a problem, but depends on the size...could be isolated, could be widespread. Justice Dept not doing anything means that ladyswan's cousin needs to file civil action from how I understand the laws...