John Hopkins settles lawsuit with $2.6m payment

Main Category: Public Health
Article Date: 27 Feb 2004 - 0:00 PDT

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John Hopkins University (plus one of its hospitals) agreed to pay $2.6 million to settle a lawsuit.

The lawsuit alleges researchers misled the US government as they applied for federal funds, say officials.

Researchers exaggerated how long their work would take, they also overstated how many people they needed to carry out the work when completing applications for research grants which were sponsored by NIH (National Institutes of Health) and other agencies (said officials).

The settlement also says that John Hopkins got federal money (allegedly) that it was not entitled to. It used erroneous fringe benefit amounts for research personnel.

U.S. Attorney Thomas M. DiBiagio said 'The United States must maintain the integrity of the grant application and funding process for research.'

John Hopkins said that there was no intention to deceive or to do wrong. They said that they are pleased this settlement will avoid the cost and distractions of continued litigation.

Bayview, a teaching hospital in the John Hospital Health System, was awarded many clinical research grants at its Addiction Treatment Services Program (from 1994 to 2000).

Faye Grau, a John Hopkins employee, sued the school and hospital in 1999. She is to get $439,000.

The school still owes $2 million (it has already paid $587,000).