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Thursday, December 20, 2012

Former Princeton Review owner settles U.S. fraud case, (OTHER OTC: REVU)

Education Holdings 1 Inc , the former owner of the Princeton Review test-preparation business, agreed to pay up to $10 million to settle allegations it made false claims for tutoring services it did not provide. The settlement, disclosed in court papers in federal court in New York, would conclude a civil lawsuit brought by the U.S. Justice Department under the False Claims Act.As part of the settlement, Education Holdings admitted to engaging in fraudulent conduct, the Justice Department said."Every dollar wrongly taken in this case was taken from a child who was entitled to help in achieving academic success and through that a better life," Preet Bharara, the U.S. Attorney for Manhattan, said in a statement.The settlement was approved Wednesday by U.S. District Judge Barbara Jones.

Shares of REVU fell by 8.1% or $-0.0023/share to $0.03. In the past year, the shares have traded as low as $0.01 and as high as $0.19. On average, 172756 shares of REVU exchange hands on a given day and today's volume is recorded at 7800.