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Gov't Scrutiny of Higher Education Institutions Continues

September 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.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

James J. Regan
Partner – London, Washington, D.C.
Phone: +44.20.7413.0011, +1.202.624.2930
Stephen J. McBrady
Partner – Washington, D.C.
Phone: +1.202.624.2547