Student Loan Company & Former Employee Drop Lawsuit

By: Amaka Ubaka Email
By: Amaka Ubaka Email

A former employee and a Lincoln-based student loan company have dropped their lawsuits against each other.

Lawyers for Nelnet and Rudy Vigil filed for a dismissal that was approved last week in U.S. District Court.

Nelnet spokesman Ben Kiser says the company settled because it
doesn't believe Vigil could pay any judgment if he lost in court.

Vigil, who lives in Commerce City, Colo., joined Nelnet in 2003
and was fired in January 2005. He sued Nelnet, and they settled in
October 2005.

In 2007, Vigil filed a federal lawsuit as a whistle-blower under
the False Claims Act, accusing the company of improperly collecting
federal subsidies. The lawsuit was dismissed.

Nelnet said that lawsuit violated its 2005 agreement with Vigil.
Vigil filed a counterclaim.

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