Home / Education / Elite Schools Pay $284M in Tuition Price-Fixing Lawsuit
Elite Schools Pay $284M in Tuition Price-Fixing Lawsuit
23 Jul
Summary
- Universities settled a lawsuit for $284 million over antitrust violations.
- The lawsuit alleged illegal collusion on tuition rates and financial aid.
- Payments are being distributed starting July 20, with checks by July 24.
Alumni from Northwestern University and the University of Chicago are beginning to receive funds from a substantial settlement. This distribution follows a $284 million agreement reached by multiple prestigious institutions to resolve a class-action antitrust lawsuit.
The lawsuit, filed in 2022, alleged that these universities engaged in illegal price-fixing by colluding on tuition rates and limiting financial aid packages. The plaintiffs claimed these practices led to students being overcharged.
While maintaining the claims lacked merit and defending their financial aid policies, Northwestern and the University of Chicago agreed to settlements. Northwestern paid $43.5 million in 2024, and the University of Chicago paid $13.5 million in 2023.
A court order on July 2 marked the first round of distributions. Payments are dependent on factors like tuition costs, attendance dates, and the number of claims filed by the estimated 200,000 class members.
If approximately half of the class members submitted valid claims, the average payout could be around $2,000. Electronic payments began on July 20, with physical checks scheduled for mailing by July 24. Recipients must cash their checks within 90 days.
