Chicago-based Corus Bankshares has disclosed that a suit by the U.S. Department of Justice could cost it $63.4 million.
The lawsuit, which was filed last month, accuses Corus of submitting $11.8 million in fraudulent insurance claims for defaulted student loans. The Justice Department is seeking triple damages and a civil penalty of $10,000 for each false claim submitted.
The suit does not disclose the number of loans in question, but in its first-quarter earnings statement filed with the Securities and Exchange Commission, Corus said it "received some information" indicating there were at least 2,800 false claims.
Based on that number, the civil penalty could be $28 million and damages could hit $35.4 million.
Corus has vowed to fight the lawsuit and said it "has substantial defenses," according to the SEC filing.