Excerpt from the Dayton Daily News
Wright State University sued this week its own former research funding arm, alleging the agency refuses to return state property and money after separating from the university.
The lawsuit against Wright State Applied Research Corp. was filed Thursday in Greene County Common Pleas Court.
The university created the corporation in 2011 as a separate nonprofit to coordinate its research funding. The relationship between the two entities has evolved following scandals tied to WSARC around misuse of federal work visas, improper payments to a high-dollar consultant and financial problems.
After the expiration of an affiliation agreement with the university expires this month, WSARC intends to change its name to Parallax Applied Research Corp. The separation will mean about 70 researchers and support staff who worked for WSU — under a contract wherein WSARC reimbursed the university — will now work solely for the research corporation.
“While that action may bring a new name to the organization, it does not erase the corporation’s history,” said a statement from WSU. “WSARC operates as an independent corporation and has been the subject of numerous lawsuits and both federal and state investigations over the past few years. Some of those investigations have resulted in the announcement of findings for recovery of state funds — which remain outstanding even today.”
The lawsuit says the research corporation owes Wright State University for its headquarters building on Colonel Glenn Highway and millions of dollars of goods and services purchased with grant funds.
