Universities Agree to Pay Millions in Collusion Suit

Five elite universities agreed to pay a combined $104.5 million into a fund for students after agreeing to settle a lawsuit in which the schools were accused of collusion to limit financial aid packages. 

Brown, Duke, Columbia, Yale, and Emory deny wrongdoing in the case, but said in court filings this week that they will pay into the fund, which will benefit students affected by the alleged antitrust violations, The Wall Street Journal reported Thursday.

The agreement means eight schools of 17 accused have agreed on settlements. An Illinois federal judge overseeing the case must still approve the settlements.

In August, the University of Chicago settled the case for $13.5 million, and Rice University reported in its 2023 fiscal statement that it settled for $33.75 in October. Vanderbilt University said in November that it has reached an agreement in principle but did not release financial details.

The California Institute of Technology, Cornell University, Dartmouth College, Georgetown University, Johns Hopkins University, the Massachusetts Institute of Technology, Northwestern University, the University of Notre Dame, and the University of Pennsylvania are still fighting the class-action lawsuit.

The case alleges that the colleges weighed students' ability to pay in some situations, including favoring the children of wealthy donors when admitting applicants, thereby disqualifying themselves for an antitrust exemption.

They worked together under the 568 President's Group, which refers to legislation passed in 1994 providing the exemption, which expired in 2022. 

Funds coming in from the settlements are being distributed to all of the roughly 200,000 students potentially involved in the class-action suit and who had attended any of the 17 schools involved dating to about 20 years ago. 

Under this week's settlement, Yale and Emory are to pay $18.5 million each; Brown, $19.5 million; and Columbia and Duke, $24 million.

The schools requested that any funds that are left over after the former students file claims  be given "to charitable causes that promote access to higher education for disadvantaged students and families."

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