On August 23, 2012, DOJ filed a complaint intervening in a qui tam lawsuit filed against ATI Enterprises, Inc. in the United States District Court for the Northern District of Texas. While an intervention by the DOJ in and of itself is notable, this case is particularly notable because the DOJ intervened on more than one issue. In previous cases, the DOJ has intervened on particular claims (e.g., for alleged violations of the 90-10 rule or the incentive compensation provision). But here, the DOJ's complaint addresses all aspects of the litigation, including allegations that ATI misrepresented its placement rates to the Texas Workforce Commission, made a variety of misrepresentations to induce students to enroll, and caused DOE to award financial aid to ineligible students and fabricated documents to conceal their ineligibility. Although it is too early to tell whether this case presents an aberration or a trend, it does serve as a reminder of DOJ's willingness to intervene in cases brought against the sector.
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DOJ intervenes in qui tam lawsuit against ATI on every issue, the first "soup to nuts" intervention
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