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Whistleblower Cases

January 22, 2004

NYSTERNet.NET, Inc. agrees to settle

The lawsuit alleged that NYSERNet, a non-profit consortium of New York universities, was secretly passing on grant money from the National Science Foundation to AppliedTheory Communications, a related for-profit corporation. This was a violation of federal grant conditions.

NYSERNet also disregarded the competitive selection process required by federal grant conditions and rigged its bidding process to award lucrative contracts for services specified in the grant to AppliedTheory, according to the lawsuit.