The New Jersey attorney general has filed a lawsuit against the Stevens Institute of Technology, its president, and the chairman of the board of trustees, accusing the school of fiscal impropriety, the Chronicle of Higher Education reports.
In an effort to force the state into confidential arbitration, Stevens, a research college known for its engineering programs, filed its own suit against New Jersey a day earlier.
Attorney General Anne Milgram's 16-count civil complaint accuses the college of spending its endowment excessively, mishandling investments, failing to maintain accurate records and giving too much money to President Harold Raveché. In 2007, Ravaché's compensation topped $790,000, placing him among the most highly paid presidents of private research institutions.
The state's lawsuit seeks the removal of Ravaché and the chairman of the trustees, Lawrence Babbio Jr.
The Hoboken school's suit claims that Milgram overstepped her legal authority when she met with Stevens's board of trustees in early September and threatened to file a lawsuit that she told them would be "devastating to Stevens" unless the board agreed to new leadership.