Leveski v. ITT Educational Services, Inc.

Dist. Ct. erred in dismissing for want of jurisdiction, plaintiff’s qui tam lawsuit under False Claims Act alleging that defendant-college knowingly submitted false claims to Dept. of Education in order to receive funding from federal student financial assistance programs, where dismissal was based on belief that plaintiff’s lawsuit was based on allegations, regarding defendant’s alleged improper incentives to its employees for signing up students for enrollment and for financial aid, that had already been publicly disclosed, and that plaintiff was not original source of her allegations. While plaintiff’s lawsuit contained allegations that were similar to allegations in prior lawsuit, plaintiff’s lawsuit could proceed since it suggested that defendant had developed sophisticated and illegal employee evaluation and compensation scheme that was not alleged in prior lawsuit. Moreover, plaintiff qualified as “original source” where her allegations about defendant’s alleged scheme was based on her personal knowledge acquired during her employment at defendant. Fact that plaintiff did not file instant lawsuit until plaintiff’s attorney contacted her did not require different result. Ct. also vacated Dist. Ct.’s imposition of $394,998.33 sanction against plaintiff’s attorneys.