Judge Lets Antitrust Case Against 32 US Universities Move Forward

US District Judge Angel Kelley on Aug. 7 denied a joint effort by the universities to dismiss the claims, Campus Reform reported. The defendants include Duke University, Northwestern University, Columbia University, Cornell University and the University of Pennsylvania. The ruling allows the plaintiffs to continue pursuing their allegations in federal court.

The case adds another legal challenge for elite US universities at a time when the cost of higher education and the financial-aid practices used by selective schools are facing heightened scrutiny.

Former students behind the lawsuit allege that universities coordinated their early-decision systems in ways that weakened competition for applicants, according to Campus Reform. They contend that the practices contributed to higher tuition and reduced financial aid, increasing the amount students ultimately paid to attend the institutions.

Early decision typically allows applicants to seek admission from a preferred institution under an arrangement that requires them to enroll if accepted. Unlike students applying through nonbinding admissions programs, successful early-decision applicants generally cannot compare competing offers before choosing a school.

The plaintiffs argue that universities reinforced those commitments by exchanging information concerning students admitted through early decision, according to Campus Reform. The alleged coordination prevented rival institutions from trying to recruit those students and diminished applicants’ leverage to seek more favorable financial-aid packages.

The universities sought to have the case thrown out before discovery, arguing that the plaintiffs hadn’t adequately alleged either an illegal agreement or an injury covered by antitrust law, Campus Reform reported. Kelley found the complaint contained sufficient allegations for the claims against the universities to proceed.

The ruling doesn’t determine whether the universities violated antitrust law. Instead, it permits the plaintiffs to continue developing their case through litigation, including the discovery process.

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Related: Early-Decision Admissions Face Antitrust Test as Colleges Lose Bid to End Suit

Kelley did dismiss three other defendants from the case: the Consortium on Financing Higher Education, the Common Application and Scoir. According to Campus Reform, the judge concluded that the complaint didn’t sufficiently show that those organizations participated in or helped facilitate the alleged conspiracy.

Several universities separately challenged whether the federal court in Massachusetts had jurisdiction over them. Duke, Emory University, Johns Hopkins University, Northwestern, the University of Pennsylvania, Vanderbilt University and Washington University in St. Louis were among the schools making that argument, according to Campus Reform.

Kelley rejected that challenge as well. The court cited financial ties between the universities and Massachusetts residents, including tuition payments from students living in the state, in finding sufficient connections for the litigation to remain there, Campus Reform reported.

The dispute comes as families continue to confront rising college expenses and substantial education debt. Campus Reform reported that federal student-loan borrowers have an average balance of about $40,000.

The former students are seeking damages as well as an injunction targeting the disputed early-decision practices and changes to how the universities handle admissions and financial aid, according to Campus Reform.

Campus Reform said it contacted lawyers representing the university defendants for comment. Its article, published Aug. 25, didn’t include a response from those attorneys.

Source: Campus Reform