Boston University agreed to return a $3 million donation to Boston businessman David Mugar Tuesday afternoon, ending the threat of a suit against the university, according to Mugar spokesman George Regan.
The money, which was to fund the expansion of the university’s main library but sat unused for nearly 10 years, will be passed on to Cape Cod Hospital and WHDH-TV (Ch. 2), Regan said.
The agreement comes after a week of intensified exchanges between the two sides’ lawyers. Mugar threatened to sue BU if the university did not give the money back by 5 p.m. Tuesday. Chancellor John Silber agreed to return the money shortly before the deadline, according to Regan.
Boston University officials could not be reached for comment Tuesday evening.
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