(CN) — A whistleblower lawsuit against Colorado Technical University can continue after the 10th Circuit denied an appeal by the for-profit school on Tuesday morning.
A panel of judges ruled that the university’s appeal of a motion to dismiss did not meet the stringent requirements to be heard by the court and would have to wait until the lower court decides the case.
“CTU has not shown that erroneous denials of public disclosure bar motions cannot be redressed on appeal from a final judgment,”U.S. Circuit Judge Scott Matheson Jr. said in the court’s decision.
Attorneys for Fiorisce, the plaintiff company formed to sue the school, celebrated the decision in a straightforward, optimistic statement.
“We are pleased with the court’s decision, and we look forward to continuing to litigate this important False Claims Act case,” Marlene Koury of Constantine Cannon, who represents Fiorisce, told Courthouse News via email.
The case centers on the school’s use of Intellipath, an adaptive learning software, the university allowed students to easily skip content they already knew to complete classes faster. However, the university then submitted the full course credits on financial aid applications. Because the program failed to offer supplemental material or to replace the missed lessons, students were actually getting fewer credit hours than reported.
Credit hours, though not the sole factor, are used to determine if an academic program receives federal financial aid.
The lawsuit...
On February 26, 2025, the U.S. District Court for the Northern District of Texas issued a significant False Claims Act (FCA) ruling in United States of America ex rel. Cheryl Taylor v. Healthcare ...