Grand Canyon Education Agrees to Settle Qui Tam Lawsuit For $35 Million

By Stephen Nakrosis

Grand Canyon Education said it has agreed to a settlement with the U.S. Department of Justice, the Department of Education, and others, which will see the company pay $35 million.

The company said the case revolves around a qui tam lawsuit which was filed against the company in Massachusetts by a former employee on behalf of the federal government. The lawsuit's primary contention was that the company's enrollment counselor compensation plan violated Title IV law, Grand Canyon Education said.

Following numerous motions and unsuccessful settlement talks, the parties recommenced settlement discussions earlier this year. An agreement was reached that was acceptable to all parties, the company said.

Under the terms of the agreement, Grand Canyon Education agreed to pay $35 million. The Education Department agreed the company's current enrollment counselor compensation and related plans don't violate the law prohibiting incentive compensation.

A court hearing to review the settlement has been scheduled for Nov. 14.

Grand Canyon Education said the settlement will not take effect until the court reviews it and the parties sign the agreement. However, the company will record the settlement amount in its financial statements for the period ended September 30, it said.

Grand Canyon Education is a publicly traded education services company, whose most significant university partner is Grand Canyon University, the company said. Prior to July 1, 2018, Grand Canyon Education owned and operated Grand Canyon University, before selling the university to an independent, Arizona non-profit corporation.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 30, 2025 19:03 ET (23:03 GMT)