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Gov't Scrutiny of Higher Education Institutions Continues

Client Alert | 1 min read | 09.12.12

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.


Insights

Client Alert | 8 min read | 10.01.25

BIS Issues “Affiliates Rule” to Dramatically Expand Applicability of Entity and Military End-User Lists

On September 29, 2025, the U.S. Department of Commerce Bureau of Industry and Security (BIS) announced a sweeping Interim Final Rule (IFR), (the “Affiliates Rule”) expanding which entities qualify as Entity List or Military End-User entities, thereby subjecting those entities to elevated export control restrictions under the Export Administration Regulations (EAR). U.S. export restrictions applicable to entities on the Entity List, Military End-User (MEU) List, and Specially Designated Nationals and Blocked Persons (SDN List) now apply to foreign affiliates that are, in the aggregate, owned 50% or more by one or more of the aforementioned entities. An entity that becomes subject to these restrictions because of its ownership structure will be subject to the most restrictive controls that attach to any of its parent entities, regardless of ownership stakes....