SAN ANTONIO — An education company will pay about $1.3 million under a civil settlement with the U.S. Justice Department to resolve allegations it employed unqualified instructors at its Texas campuses.
Federal prosecutors announced the settlement with Kaplan Higher Education on Monday. Prosecutors said the settlement isn’t an admission of liability by Kaplan or its affiliates.
A Kaplan official said the company has always maintained that the allegations were untrue, adding they chose to settle to avoid lengthy litigation.
About $1 million of the settlement will be paid in the form of tuition refunds to 289 students.
The Justice Department began investigating after a lawsuit accused Kaplan of employing unqualified instructors to teach medical assistant courses at its San Antonio campuses. The suit alleged Kaplan received federal tuition funds for those courses.