Client Alerts & Newsletters

Gov't Scrutiny of Higher Education Institutions Continues

Sep.12.2012

On September 5, following a string of recent cases involving government scrutiny of academic institutions, the Second Circuit affirmed that Cornell University and a professor at the school had violated the FCA by submitting false claims in applications for federal grants. In a decision that should raise eyebrows in the higher education community, the court held that, because the research grant at issue "did not produce a tangible benefit" to the government and because "the government has entirely lost its opportunity to award the grant money to a recipient who would have used the money as the government intended," the proper measure of damages is the full amount of the grant.


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James J. Regan
Partner – Washington, D.C., London
Phone: +1 202.624.2930 , +44.20.7413.0011
Email: jregan@crowell.com

Stephen J. McBrady
Partner – Washington, D.C.
Phone: +1 202.624.2547
Email: smcbrady@crowell.com

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