Lawsuit over uPhoenix's recruiting practices may proceed, says judge

July 10, 2012

A US federal judge has cleared the way for a whistle-blower lawsuit accusing the University of Phoenix of improperly paying recruiters. The suit alleges that uPhoenix and its parent company, the Apollo Group, violated a ban on paying recruiters based on the number of students they enrolled. The judge did not rule on the merits of the lawsuit, but he denied a request by uPhoenix to dismiss the suit, which claims that a settlement reached in a previous lawsuit did not deter the company from continuing to improperly compensate recruiters. The Chronicle of Higher Education (free access)