As local counsel in Chicago, FeganScott filed a proposed class action lawsuit against 16 elite universities accusing them of colluding on financial aid. The 16 universities included in the suit are Brown, California Institute of Technology, University of Chicago, Columbia, Cornell, Dartmouth, Duke, Emory, Georgetown, Massachusetts Institute of Technology, Northwestern, Notre Dame, University of Pennsylvania, Rice, Vanderbilt, and Yale.
The lawsuit alleges that these universities participated in a price-fixing cartel that aimed to reduce or eliminate financial aid, resulting in less financial aid for students in need. According to the suit, the universities accomplished this via their membership in the so-called “568 Presidents Group” and agreement to, and enforcement of, a set of standards for determining a family’s ability to pay for college, which reduced or eliminated price competition among the members and artificially inflated the net price of attendance for financial-aid recipients.
A class of over 170,000 students is represented by the class action lawsuit who, in total, claim to have been overcharged by at hundreds of millions of dollars.