Washington Post 2008 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2008 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

On or about January 17, 2008, an Assistant U.S. Attorney in the Civil Division of the U.S. Attorney’s Office for the
Eastern District of Pennsylvania contacted Kaplan Higher Education Division’s CHI-Broomall campus and made inquiries
about the Surgical Technology program, including the program’s eligibility for Title IV federal financial aid, the program’s
student loan defaults, licensing and accreditation. The inquiry is presently proceeding on an “informal, voluntary basis.”
Kaplan is responding to the information requests made and intends to cooperate fully with the inquiry. The U.S.
Department of Education is conducting a program review at the CHI-Broomall campus. Kaplan has responded to the
information requests made by the Department of Education and intends to cooperate fully with its program review. The
U.S. Attorney’s Office has informed Kaplan Higher Education that it may make further information requests upon the
completion of the Department of Education program review.
On March 25, 2008, the U.S. District Court for the Middle District of Florida unsealed an action against subsidiaries of
the Company encaptioned, United States of America ex rel. Carlos Urquilla-Diaz, et al. v. Kaplan University et al. The
complaint contains, among other things, allegations under the False Claims Act, 31 U.S.C. Sec. 3729 et seq. related to
eligibility for Title IV funding. The U.S. Government declined intervention. The Company has moved to dismiss the
complaint. The U.S. Magistrate has entered a Report and Recommendation that the matter be transferred to the U.S.
District Court for the Southern District of Florida. Discovery has been stayed pending rulings on the motions. The Company
intends to defend this action vigorously.
On April 7, 2008, the U.S. District Court for the Northern District of Illinois unsealed an action against a subsidiary of the
Company encaptioned, United States of America ex rel. Jorge Torres v. Kaplan Higher Education Corp. The U.S.
Government declined intervention. The Plaintiff’s complaint contains, among other things, allegations under the False
Claims Act, 31 U.S.C. Sec. 3729 et seq. related to eligibility for Title IV funding. The Company has moved to dismiss
the complaint and will continue to defend this action vigorously.
On September 2, 2008, the U.S. District Court for the Western District of Pennsylvania unsealed an action against
subsidiaries of the Company encaptioned, United States of America ex rel. Victoria Gatsiopoulos et al. v. ICM School of
Business & Medical Careers et al. The Plaintiff’s complaint contains, among other things, allegations under the False
Claims Act, 31 U.S.C. Sec. 3729 et seq. related to eligibility for Title IV funding. The U.S. Government filed notice that it
is not intervening as of August 18, 2008. The Company has moved to dismiss the complaint and will continue to defend
this action vigorously.
The Company and its subsidiaries are also subject to administrative proceedings and are defendants in various other civil
lawsuits that have arisen in the ordinary course of their businesses, including actions alleging libel, violations of
applicable wage and hour laws and claims involving current and former students at the Company’s schools. While it is
not possible to predict the outcome of these lawsuits, in the opinion of management their ultimate dispositions should not
have a material adverse effect on the Company’s business or financial position.
Item 4. Submission of Matters to a Vote of Security Holders.
Not applicable.
2008 FORM 10-K 31