NewsWorks reports that:
The former employees allege that K12-managed schools aggressively recruited children who were ill-suited for the company's model of online education. They say the schools then manipulated enrollment, attendance and performance data to maximize tax-subsidized per-pupil funding.
K12's motivation for manipulating the numbers, according to the suit, was to keep billing traditional public school districts for as many students as possible.
The U.S. District Court in the Eastern District of Virginia has denied a request from K12 to dismiss the case.
A trial could take place this spring.