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In a recent court hearing on a private antitrust lawsuit, seventeen prestigious U.S. colleges and universities faced allegations of conspiring to restrict financial aid, shedding light on a parallel investigation conducted by the U.S. Justice Department. The court revealed that at least one high-ranking admissions official was questioned as part of the government’s probe into similar issues.
The lawsuit was filed last year in a Chicago federal court by a group of students against prominent institutions such as Brown University, Georgetown University, and Yale University, along with fourteen others. Seeking class action status on behalf of potentially hundreds of thousands of students, the complaint alleges that the universities overcharged billions of dollars in tuition fees. The University of Chicago has already expressed its intention to settle in the case.
During the hearing, U.S. District Judge Matthew Kennelly disclosed that the Justice Department and the New York attorney general’s office were conducting a parallel investigation related to the same issues raised in the private lawsuit. However, specific details about the scope of the investigation and the targeted schools were not made public.
In response to the revelation, a DOJ’s antitrust division spokesperson declined to comment, and the New York attorney general’s office did not immediately respond to inquiries.
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Judge Kennelly brought up the government investigation while considering the plaintiffs’ motion for sanctions against Georgetown and its legal representatives over their conduct during the litigation. The details of the motion were filed under seal, and the matter was addressed in open court during the hearing.
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Expressing his concern, Judge Kennelly chided defense lawyers for not informing the court about the ongoing government probe before issuing an order in March 2023 related to evidence collection in the case. He questioned why the court was not made aware of depositions taken from individuals involved in the government investigation, who were addressing the same issues as the private lawsuit.
Georgetown University and its legal representation did not immediately respond to the court’s request for comment following the hearing.
Judge Kennelly refrained from issuing any sanctions at the moment and stated that the plaintiffs’ request was under “advisement.” He expressed his disapproval of the defense’s conduct, cautioning that it might influence future rulings in the case.
Responding to the court’s rebuke, Robert Gilbert, the attorney representing the plaintiffs, stated that the court’s stance “speaks for itself.”
The U.S. Justice Department had previously filed a “statement of interest” in the case, asserting that the plaintiffs had adequately presented allegations of a potential violation of U.S. antitrust law.
As the investigations continue, the universities involved in the lawsuit and the students affected await further developments. The outcome of both the private antitrust lawsuit and the government’s parallel investigation could have significant implications for higher education institutions and their financial aid practices.
The court hearing on the private antitrust lawsuit against seventeen elite U.S. colleges and universities has revealed a concurrent investigation by the U.S. Justice Department and the New York attorney general’s office. The lawsuit, brought forward by a group of students, accuses the institutions of conspiring to limit financial aid and alleges billions of dollars in overpayment for tuition. The universities under scrutiny are facing both legal and public scrutiny as the investigations unfold.
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