Grand Canyon Education Inc has agreed to pay $5.2 million to the U.S. government and a former employee to settle a qui tam lawsuit filed under the False Claims Act.

According to court documents, Grand Canyon was served with a qui tam lawsuit on September 11, 2008 filed by a then-current employee. The lawsuit contends that Grand Canyon and some other for-profit colleges did not meet the proposed gainful employment regulation, which calls for colleges to prove they prepare students for jobs before they can receive federal aid.

The colleges involved are also being probed into their enrollment and recruitment practices.

By settling the three year-old lawsuit, Grand Canyon will be released from all similar claims in the future, according to an online statement posted on the college’s website.

A qui tam lawsuit is a civil case brought by one or more individuals on behalf of the federal government for an alleged submission to the government of a false claim for payment.

If you are a whistleblower with information about fraud on the government, you may be able to bring a Qui Tam lawsuit under the False Claims Act. Please contact the Qui Tam lawyers of Tycko & Zavareei, LLP, at 202-973-0900 today.