The Forum case is in many ways a sideshow to the U.S. government’s suit—which alleges breach of contract and violations of the False Claims Act. In addition to the prominent plaintiff, the government’s suit also seeks the bigger prize— $102 million in damages.
The government alleges that investments Shleifer and Hay made in Russia violated conflict of interest policies included in the government’s contract with Harvard, and that Harvard failed in its supervisory role.
Shleifer, Hay and Harvard deny wrongdoing in both cases.
A settlement in the Forum case would not impact the government’s case—which is proceeding toward trial.
At a hearing last week, a judge indicated he was likely to send the key aspects of the government’s suit to a jury.
—Staff writer David H. Gellis can be reached at gellis@fas.harvard.edu.