ITT Educational Services Inc. will pay $725,000 to settle a whistleblower lawsuit that charged that the company inflated students’ grade point averages to qualify for more financial aid from the State of California.
The settlement resolves the state’s portion of the lawsuit. The company said that the U.S. Dept. of Justice had decided not to intervene in the federal portion of the suit, which can still be pursued by the whistleblowers.
Inside Higher Ed reported on the settlement on October 18, 2005.