Last week, a federal judge approved a total of $284 million in settlements related to a class-action lawsuit that accuses several of the most prestigious universities in the United States of favoring applicants from wealthy families in their admissions processes. This systematic action caused a detriment to those students from low-income families who needed financial aid.
“We are pleased that the settlements were approved and we are eager to get money out to class members,” Eric Cramer, president of Berger Montague and one of the plaintiffs’ lead attorneys, said after the hearing.
Class Action Lawsuit Against the Most Prestigious Universities in the USA
Originally, the class-action lawsuit was filed in 2022 and was joined by more than 200,000 plaintiffs, who are currently students, or already graduates, and targeted 17 renowned universities.
According to the indictment, these institutions violated U.S. antitrust laws by failing to adhere to a commitment not to consider student finances when making admissions decisions.
To date, ten of the sued universities have reached a settlement. Students who meet the stipulated requirements can expect to receive at least $2,000 each, according to court records.
Universities That Accepted a Settlement in This Class Action Lawsuit
The plaintiffs reached a settlement agreement with the following universities:
- Chicago agreed to make a settlement payment of $13.5 million.
- Emory agreed to make a settlement payment of $18.5 million.
- Yale agreed to make a settlement payment of $18.5 million.
- Brown agreed to make a settlement payment of $19.5 million.
- Columbia agreed to make a settlement payment of $24 million.
- Duke agreed to make a $24 million settlement payment.
- Dartmouth agreed to make a settlement payment of $33.75 million.
- Rice agreed to make a settlement payment of $33.75 million.
- Northwestern agreed to make a settlement payment of $43.5 million.
- Vanderbilt agreed to make a $55 million settlement payment.
Who Can Receive a Payment From the Class Action Lawsuit Against Universities?
Eligible persons are all U.S. citizens or permanent residents who, during the class period, have enrolled in one or more of the plaintiffs’ full-time college programs, and who have received need-based financial aid.
Must have received at least some financial aid in tuition, fees, room, or board to attend one or more of the full-time undergraduate programs at the universities listed above.
Plaintiffs’ Legal Strategy
The students’ lawyers have adopted a strategy of “increasing the settlement amounts with each successive agreement to put pressure on the defendants who do not reach an agreement,” according to statements by the legal representatives.
Kennelly also approved a request from the plaintiffs’ lawyers for $94 million in legal fees, justifying the amount for the time spent on the case, which exceeds 91,310 working hours, according to Cramer.
The Class Action Is Divided Into Five Phases or Periods
- For Chicago, Columbia, Cornell, Duke, Georgetown, MIT, Northwestern, Notre, Rice, Vanderbilt, Yale: from the fall 2003 term until the date the Court issues an order preliminarily approving the Settlement.
- For Brown, Dartmouth Emory: from the fall 2004 term until the date the Court issues an order preliminarily approving the Settlements.
- For Caltech: from the fall 2019 period until the date the Court issues an order preliminarily approving the Settlement.
- For Johns Hopkins: from the fall 2021 term until the date the Court issues an order preliminarily approving the Settlement.
Who Can’t Join the Lawsuit?
Those official persons or trustees of the defendants, or any current or former employees working at the defendant universities, in any of the following positions may not join the lawsuit: assistant or associate vice presidents or vice chancellors, executive directors or directors of the defendants’ financial aid and admissions offices, or any dean or vice dean, or any employee of the defendants’ in-house legal offices. This is the official website of the class-action lawsuit settlement.