US universities settle financial-aid antitrust lawsuit for US$166mil

US universities settle financial-aid antitrust lawsuit for US$166mil

The universities were accused of favouring wealthy student applicants.

The case will continue against Cornell University, University of Pennsylvania and Georgetown University. (Wikimedia Commons pic)
HANOVER:
Dartmouth, Northwestern, Rice and Vanderbilt universities have agreed to pay a combined US$166 million to resolve claims that they favoured wealthy student applicants, pushing total settlements in a federal antitrust lawsuit over college financial aid practices to US$284 million.

Lawyers for a proposed class of hundreds of thousands of current and former US students disclosed the latest settlements in a filing late Friday in Chicago federal court.

The 2022 lawsuit said 17 prominent colleges and universities violated US antitrust law by violating a pledge not to consider students’ finances in making admissions decisions, giving wealthy students an edge.

Dartmouth and Rice said they would each pay US$33.75 million. Northwestern agreed to pay US$43.5 million, and Vanderbilt will pay US$55 million.

Brown, Yale and Columbia universities earlier agreed to pay a combined US$62 million to resolve claims against them.

The schools, including those that have reached settlements, have denied wrongdoing.

Northwestern, Dartmouth, Vanderbilt and Rice in statements said settling with the plaintiffs allowed them to move past the case and focus on their academic missions.

The case will continue against seven schools, including Cornell University, University of Pennsylvania and Georgetown University.

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.”

Average payouts to members of the class are expected to be US$750, according to a court filing.

The settlements are subject to a judge’s consideration and approval.

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