The Educational Testing Service (ETS), the big kahuna in the academic testing world, and a nonprofit, is beign sued by some California city school students who were able to do all kinds of activities during their placement tests ultimately invalidating their tests. ETS is being sued for not being more rigorous and for not establishing a more acceptable and appropriate testing environment.
ETS is really a big business and kind of a monopoly in its field. ETS in many ways sets the standard for what is right about testing and while I can't figure out why it's a nonprofit, as a nonprofit it really should be mission-focused. Mission-focused would include creating appropriate testing environments.
What has gone wrong by whom: too big and too out of control; less than effective management and operations; weak governance that doesn't establish and enforce high standards? I am sure the courts or out-of-court discussions will help determine the answer and the public may never know but in the meantime, scratch your heads. The story may be found here.