Statement
Statement on Status of Motion to Certify Order Denying Motion to Dismiss False Claims Act Case
PHOENIX, January 8, 2008 -- University of Phoenix, subsidiary of Apollo Group, Inc. (Nasdaq:APOL), said today that a federal court in California has denied a motion that would have facilitated the immediate appeal of a recent order denying its motion to dismiss a False Claims Act case brought by two former disgruntled employees, United States ex rel. Hendow v. University of Phoenix. Previously, the Court twice dismissed this case, ultimately with prejudice, before it was reinstated by the Ninth Circuit Court of Appeals in September 2006.
“We are disappointed with the Court’s decision, as an immediate appeal of the order could have ended this litigation,” said Timothy J. Hatch of Gibson, Dunn & Crutcher LLP, counsel to University of Phoenix. “Nonetheless, we look forward to trying this case on its merits. We are confident the evidence will support the fact that University of Phoenix fully complied with the law. The plaintiffs are trying to twist a routine regulatory matter into a federal case of fraud and will not succeed.”
The statute and regulation at issue in the lawsuit were adopted to prevent the enrollment of unqualified students. University of Phoenix’s compliance is demonstrated by its low student loan default and high graduation rates – two widely-accepted measures of quality. For the period covered by this lawsuit, University of Phoenix’s average student loan default rate was well below the national average for comparable schools, and its graduation rate was equal to or better than the average rate found among four-year colleges and universities.
University of Phoenix’s quality is further validated by the fact that it is regionally accredited by the Higher Learning Commission and is a member of the North Central Association, one of six regional accrediting bodies considered to be the gold standard of accreditation. Regional accreditation is every bit as rigorous for University of Phoenix as it is for the other colleges and universities accredited by the North Central Association, which include Northwestern University, University of Notre Dame, University of Michigan, Ohio State University and University of Arizona, to name a few.
“The plaintiffs’ approach to this litigation will not hold up at trial,” said Hatch. “They have disregarded the facts, used the wrong legal standard, and cannot demonstrate any harm caused to students or taxpayers. We are eager to turn this case on its head and expose the plaintiffs’ false claims, vindicating University of Phoenix in the process.”
A detailed overview of University of Phoenix’s legal arguments in the case may be found in the Legal Information Center at: www.apollolegal.com.
About University of Phoenix:
University of Phoenix is one of a handful of institutions of higher learning – public or private – completely devoted to providing access to higher education for working students. We are constantly innovating to help students balance education and life in a rapidly changing world. Through flexible schedules, challenging courses and interactive learning, our students achieve personal and career aspirations without putting their lives on hold. More than 300,000 students are currently enrolled in University of Phoenix, making us the largest private university in North America. More than 40 percent of our enrollment is composed of racial or ethnic minorities who are successfully completing their education and graduating with associate’s, bachelor’s and master’s degrees. Much like a community college, University of Phoenix is an open-enrollment institution, meaning any student who has completed high school or earned a GED may enroll in undergraduate courses. Our charge is to accept students at different stages of development and help them achieve the next milestone in their education.
About Apollo Group, Inc., parent company to University of Phoenix:
Apollo Group, Inc. has been an education provider for more than 30 years, operating the University of Phoenix, the Institute for Professional Development, the College for Financial Planning, Western International University and Insight Schools. The Company offers innovative and distinctive educational programs and services at high school, college graduate and doctoral levels at 259 locations in 40 states and the District of Columbia; Puerto Rico; Alberta and British Columbia, Canada; Mexico and the Netherlands, as well as online, throughout the world.
For more information about Apollo Group, Inc. and its subsidiaries, call (800) 990-APOL or visit Apollo on the company website at: www.apollogrp.edu.
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