Rudy Vigil v. Nelnet, Inc., et al, No. 10-1784 (8th Cir. 2011)
Annotate this CasePlaintiff, a former Nelnet, Inc. ("Nelnet") loan advisor, alleged that certain Nelnet marketing practices were continuing violations of the Federal Family Education Loan Program ("FFELP") established under Part B of the Higher Education Act of 1965, 20 U.S.C. 1071, that rendered Nelnet liable under the False Claims Act ("FCA"), 31 U.S.C. 3729(a). Plaintiff joined JPMorgan Chase & Co. and Citigroup, Inc. as defendants alleging they were knowing participants in a conspiracy to submit false claims. At issue was whether the district court properly dismissed plaintiff's third amended complaint. The court affirmed the dismissal and held that there was no abuse of discretion in dismissing plaintiff's claims where plaintiff failed to plead fraud with sufficient particularity and for failure to state a claim under Federal Rule of Civil Procedure 9(b).
Court Description: Civil case - False Claims Act. District court did not err in dismissing qui-tam action alleging certain Nelnet marketing practices were continuing violations of the Federal Family Education Loan Program statutes and regulations.
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