That is the latest rumor being reported by Popular Science blog.
Link to blog post.
If team Schaft is pulled from the challenge then they will give up a 1 million dollar grant for finishing first in the challenge trails. Plus they will be giving up a chance for a 2 million dollar grant if they won the challenge finals this year. Which they where a favorite to do.
This is a very interesting decision by Google. You would think that the winning of the Robotics Challenge would be a great PR move for Google robotics as it is a rescue robot challenge?
The next thing to watch is to see how this will effect the other teams? Will DARPA choose another team to get team Schaft's money and who is now the favorite to win the challenge finals? Also how will this effect the teams using the Google robot Atlas?