US Universities Settle Financial-Aid Antitrust Lawsuit for $166 Million
Legal Settlements Reached by Universities
Dartmouth, Northwestern, Rice, and Vanderbilt universities have agreed to pay a total of $166 million to settle claims of favoring wealthy student applicants in a federal antitrust lawsuit. This brings the total settlements in the case to $284 million.
Allegations Against Universities
A lawsuit filed in 2022 accused 17 prominent colleges and universities of violating antitrust laws by considering students’ finances in admissions decisions, giving affluent students an unfair advantage.
Details of Financial Settlements
Dartmouth and Rice will each pay $33.75 million, while Northwestern agreed to pay $43.5 million and Vanderbilt will pay $55 million. Previously, Brown, Yale, and Columbia universities agreed to pay a combined $62 million to settle similar claims.
Schools’ Responses to Settlements
The universities involved, including those that have settled, have denied any wrongdoing. Northwestern, Dartmouth, Vanderbilt, and Rice stated that settling with the plaintiffs allows them to focus on their academic missions.
Further Legal Proceedings
The case is ongoing against seven schools, including Cornell University, University of Pennsylvania, and Georgetown University. Plaintiffs’ lawyer, Ted Normand, mentioned that the new settlements will increase compensation for class members for the harm caused by the defendants’ actions.
Compensation for Class Members
The average payout to class members is expected to be $750, with the settlements awaiting approval from a judge. These settlements aim to redress the alleged harm caused and move towards a resolution in the case.
