U.S. ex rel. Oberg v. Kentucky Higher Education

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Relator filed suit against certain student loan corporations, alleging that they defrauded the Department of Education and thus violated the False Claims Act (FCA), 31 U.S.C. 3729 et seq. After applying the arm-of-the-state analysis on remand, the district court again concluded that all of the student loan corporations constituted state agencies not subject to suit under the Act and granted their motions to dismiss. Applying the arm-of-the-state analysis to the corporations, the court vacated the judgment of the district court as to PHEAA and remanded to permit limited discovery on the question of whether PHEAA was truly subject to sufficient state control to render it a part of the state; vacated the judgment with respect to VSAC and remanded to permit limited discovery; and affirmed the judgment with respect to ASLA because it is an arm of Arkansas and therefore not subject to suit under the FCA. View "U.S. ex rel. Oberg v. Kentucky Higher Education" on Justia Law