$284M Settlement: 10 Top Universities Agree to Pay for Alleged Price-Fixing of Financial Aid and Admissions!

Landmark Settlement Approval

Implications and Continuing Challenges

According to WHYY, in a pivotal legal ruling a federal judge has approved a groundbreaking $284 million settlement involving 10 universities accused of engaging in price-fixing practices related to financial aid and admissions. This resolution follows a class-action lawsuit initiated in 2022 which alleged that these universities part of the 568 Presidents Group colluded to manipulate financial aid awards and admissions processes. Notable institutions such as Columbia, Duke, Yale, and Northwestern have agreed to substantial payouts ranging from $13 million to $55 million as part of the settlement.

The lawsuit filed in U.S. District Court in Illinois contended that these universities operated akin to a “cartel,” violating federal antitrust laws by unfairly controlling financial aid distributions and granting preferential admissions treatment to students from affluent families and influential backgrounds. The approved settlement marks a significant development in addressing these allegations providing financial compensation to affected students and families. Importantly the settlement terms do not compel the universities to admit any wrongdoing with many opting to settle to avoid prolonged legal battles and associated costs.

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$284M Settlement: 10 Top Universities Agree to Pay for Alleged Price-Fixing of Financial Aid and Admissions! (PHOTO: WSJ)

Upholding Innocence: Institutions Defend Against Allegations

Despite the progress made with the approved settlements legal challenges persist for the University of Pennsylvania and six other universities that have opted to continue defending themselves against the accusations. Institutions like Penn, Cornell, and Georgetown maintain their stance of innocence asserting that their financial aid policies were conducted in a fair and competitive manner. As the litigation unfolds involving potentially hundreds of thousands of students impacted over two decades the case underscores broader concerns about ensuring equity and transparency in higher education admissions and financial assistance.

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