In a significant development, renowned institutions such as Brown, Yale, and Columbia have collectively agreed to pay a substantial sum of $62 million to resolve a high-profile financial-aid lawsuit. This settlement, part of an ongoing case involving Emory and Duke as well, pushes the total settlements in the lawsuit to an impressive $118 million.
Legal representatives for a proposed class of hundreds of thousands of current and former U.S. college students unveiled these latest agreements in a recent filing within the chambers of the Chicago federal court. The lawsuit, initiated in 2022 and already prompting settlements from the University of Chicago and Vanderbilt, alleges extensive tuition overcharges in violation of U.S. antitrust law.
The core contention of the plaintiffs revolves around the accusation that these esteemed institutions, even those that have settled, colluded to restrict financial aid by breaching a pledge not to consider students’ financial status during admissions decisions. According to the claimants, this practice favored affluent students and provided them with an unfair advantage.
Yale and Emory have committed to paying $18.5 million each, while Brown has agreed to a $19.5 million settlement. Columbia and Duke, on the other hand, are set to pay $24 million each. The specific amount of Vanderbilt’s settlement remains undisclosed, and the University of Chicago, the first to settle, has committed to paying $13.5 million.
Notably, 10 institutions, including Cornell University, University of Pennsylvania, and Georgetown University, are yet to resolve their involvement in the lawsuit.
Robert Gilbert, one of the lawyers representing the plaintiffs, emphasized the importance of other academic leaders addressing overcharges for middle-class and working-class students. In response, spokespersons for Brown, Duke, Columbia, Emory, and Yale released separate statements, expressing their relief in settling with the plaintiffs and highlighting their commitment to refocus on their academic missions.
It is crucial to note that U.S. District Judge Matthew Kennelly must approve these settlements, and this lawsuit, which he declined to dismiss in 2022, continues to unfold as a significant legal challenge for the implicated institutions.
This development in the financial-aid dispute underscores the ongoing scrutiny on the admissions practices of prestigious universities, signaling a paradigm shift in how these institutions navigate financial considerations in the admission process.
