Judge Certifies Class of Students in Financial Aid Antitrust Lawsuit Against Elite Universities

Judge Matthew F. Kennelly of the U.S. District Court for the Northern District of Illinois granted the plaintiffs’ motion for class certification in an order issued Monday, according to Bloomberg. The judge also appointed MoloLamken LLC as lead counsel for the class and named Freedman Normand Friedland LLP and Berger Montague PC as co-counsel, per Bloomberg.

The lawsuit, originally filed in 2022, accuses a group of prestigious private universities of violating federal antitrust laws by working together to limit competition in financial aid awards. The plaintiffs contend that the schools collaborated through the so-called “568 Presidents Group” to establish common methodologies for determining financial need, allegedly reducing the amount of aid available to students and increasing the net cost of attendance. According to court filings, the case also alleges that some institutions gave admissions advantages to wealthy applicants despite claiming to follow need-blind admissions practices. According to Bloomberg, the certified class includes students who argue they paid more for their education as a result of the alleged conduct.

The certification order marks a significant development in litigation that has already resulted in hundreds of millions of dollars in settlements with several universities. According to Reuters, more than a dozen institutions have previously agreed to settlements totaling nearly $320 million while denying any wrongdoing. The remaining defendants have continued to contest the allegations and maintain that their financial aid practices complied with the law.

The ruling comes after months of disputes over class certification and the adequacy of plaintiffs’ counsel. Earlier this year, Kennelly indicated he would allow the case to proceed as a class action if new leadership was installed for the plaintiffs’ legal team following concerns surrounding disclosures related to litigation funding arrangements, according to Reuters. The students subsequently asked the court to appoint MoloLamken as lead counsel, a request that was ultimately granted.

The lawsuit centers on claims that participating universities suppressed competition for financial aid and effectively avoided bidding against one another for students requiring assistance. According to Bloomberg, plaintiffs argue the alleged coordination allowed schools to artificially increase the price students paid to attend their institutions.

The case is expected to continue toward trial against the remaining universities that have not settled. Those schools have denied the allegations, arguing that their admissions and financial aid policies were lawful and designed to promote educational access and socioeconomic diversity.

Source: Bloomberg