A federal judge has allowed a proposed class-action lawsuit against 32 prominent US colleges and universities to move forward over allegations that their early-decision admissions practices helped drive up tuition costs.
The institutions named in the case include Duke University, Cornell University, Northwestern University, Columbia University, Amherst College and Wesleyan University.
US District Judge Angel Kelley of Massachusetts ruled that the students behind the lawsuit had presented enough evidence to plausibly claim that the universities engaged in an agreement that limited competition for students accepted through early-decision programs.
The case was brought last year by plaintiffs including two former Wesleyan students. They allege that the colleges violated federal antitrust laws by agreeing not to compete for applicants who had already been accepted under another institution’s early-decision system.
Early-decision admissions differ from the regular college application process. Students typically apply earlier and may have a greater likelihood of being admitted, but those who receive an offer are generally required to enroll. That commitment means students cannot use competing offers to compare tuition, financial aid or other financial terms.
According to the lawsuit, the arrangement weakens competition among colleges and leaves students with less leverage when determining the cost of attending.
The universities have rejected the allegations and asked the court to throw out the case. They argued that the lawsuit failed to identify conduct that actually harmed competition and described the claims as speculative.
Judge Kelley, however, pointed to a joint statement signed by several universities as evidence supporting the students’ allegations. The statement included commitments by participating institutions not to compete for students who had been admitted through another school’s early-decision program.
The judge dismissed claims against other defendants named in the lawsuit, including the Consortium on Financing Higher Education, while allowing the claims against the universities to continue.
The plaintiffs are seeking class-action status for students who applied through early-decision programs from 2021 onward. The proposed class could also include certain students who entered the universities through the regular admissions process.
The ruling does not determine whether the universities ultimately violated antitrust law. Instead, it allows the students’ central claims to proceed as the litigation develops.
