Settlement describes a 'high-pressure sales operation' in for-profit chain's recruiting processes


for-profitFederal and state authorities announced a $95.5 million settlement with the nation’s second-largest chain of for-profit colleges.

The settlement with Education Management Corp. resolves a long-running federal whistleblower case in which former employees alleged the company was illegally paying recruiters based on the number of students they enrolled. The U.S Justice Department intervened in the case in 2011, along with several state attorneys general.

By fostering a high-pressure sales operation for its recruiters, Education Management Corp. violated a ban on such compensation and...

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