Four More Influential Universities Settle Financial Aid Lawsuit For $166 Million
Dartmouth, Northwestern, Rice, and Vanderbilt universities have settled and agreed to pay $166m in the financial-aid antitrust lawsuit.
The lawsuit alleged that the universities gave benefits to wealthy student applicants and with the latest settlement the total settlements in a federal antitrust lawsuit over college financial aid practices has reached $284 million.
Details of the settlement were revealed to the Chicago federal court by the lawyers who represented hundreds of thousands of current and former U.S. students in the class lawsuit.
In a statement, the University of Chicago said that its settlement of a price-fixing suit would enable it to halt the litigation and concentrate on academic activities.
The lawsuit, which was lodged in 2022, charged 17 major colleges and universities for violating U.S. antitrust laws.
The lawsuit alleged that the academic institutions had pledged that it would not consider the financial status of the students while granting admissions but did not adhere to the pledge thus giving wealthy students an advantage.
The universities were involved in a price-fixing process and deciding how much financial assistance would be awarded to the prospective students.
If proven, the actions violated Section 568 of the Improving America’s Schools Act of 1994.
Of the four universities Dartmouth and Rice agreed to pay $33.75 million each, Northwestern $43.5 million, and Vanderbilt will pay $55 million.
Earlier Brown, Yale, and Columbia University agreed to pay a combined $62 million to resolve claims.
All the universities have denied any wrongdoing including those who have reached a settlement.
The case has not been halted and will continue against seven academic institutions which include the California Institute of Technology, Cornell University, Georgetown University, Johns Hopkins University, the Massachusetts Institute of Technology, the University of Notre Dame, and the University of Pennsylvania.
To date ten of the 17 universities who have been named in the lawsuit have agreed for the settlement.
The total settlement amount has reached $284 million and the class members will be paid their due from this amount.
Each member of the class is expected to get $750 from the settlement amount.
However, the settlement must be approved by the judge before the class members get their share of money.
Ted Normand, a lawyer for the plaintiffs, in a statement said,
“These new settlements will significantly increase the compensation to the class members for the harm we allege the defendants’ cartel caused.”
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