NewsINDIRECT COSTS

Judge Dismisses Suit Against Stanford

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Science  13 Sep 1996:
Vol. 273, Issue 5281, pp. 1488
DOI: 10.1126/science.273.5281.1488

Summary

A federal judge in San Jose, California, has dismissed a multimillion-dollar lawsuit against Stanford University, claiming that it had vastly overcharged the federal government for indirect costs, or overheads, on government research grants and contracts. The suit was filed by Paul Biddle, a federal accountant who first raised concerns about Stanford's billing practices in 1989. Its dismissal may be the final chapter in a painful saga in which Stanford admitted inappropriately charging several items to overheads—including a yacht—but was deemed by several investigations to have committed no more than accounting errors.