Yale University settles False Claims Act claims

Yale University has consented to pay a hefty settlement to resolve an investigation of the university’s misuse of federal research grant money. A two-year investigation examined Yale’s accounting practices from 1999 to 2006. During that time, the university received nearly $3 billion in federal grant money.
The government alleged that to avoid returning unused grant money, some researchers billed federal grant accounts for expenses that were incurred on work falling outside the scope of the grants. In addition, researchers were paid 100% of their summer salaries from federal grant accounts for work performed on matters unrelated to the grants.

Only half of the settlement is to pay damages for the improper billings; the other half represents penalties paid by Yale on account of its conduct. Yale has not admitted to any liability, however. In exchange for the settlement, the government agreed not to sue the university under the federal False Claims Act.

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