College Board Price-Fixing Antitrust

DEFENDANTS

Northwestern University
College Board
American University
Baylor University
Boston College
Boston University
Brandeis University
Brown University
California Institute of Technology
Carnegie Mellon University
Case Western Reserve University
The Trustees of Columbia University in the City of New York
Cornell University
Trustees of Dartmouth College
Duke University
Emory University
Fordham University
George Washington University
Georgetown University
Harvard University
The Johns Hopkins University
Lehigh University
Massachusetts Institute of Technology
University of Miami
New York University
Northeastern University
University of Notre Dame du Lac
The Trustees of the University of Pennsylvania
William Marsh Rice University
University of Rochester
University of Southern California
Southern Methodist University
Stanford University
Syracuse UniversityTufts University
Tulane University
Villanova University
Wake Forest University
Washington University in Saint Louis
Worcester Polytechnic Institute
Yale University

WHAT’S THE ISSUE?

Hagens Berman has filed a class-action lawsuit against 40 of the nation’s top private universities and College Board, an entity involved in college prep testing and financial aid, accusing them of colluding to artificially lower the college financial aid for students with noncustodial parents (NCPs). The law firm’s investigation found evidence that College Board implements and enforces unfair guidelines for students of noncustodial parents (any parent whose child does not live with them the majority of the time). This alleged anticompetitive conduct has decreased students’ chances of qualifying for additional need-based financial aid from colleges and universities. Affected families and college students may be entitled to recoup losses.

ABOUT THE COLLEGE BOARD

College Board is a not-for-profit organization that administers and develops online profiles that allow would-be college students to apply for nonfederal financial aid and college scholarships. Since its founding in 1900, College Board has ballooned, now holding more than $1.69 billion in cash and investments, with profits growing nearly every year.

College Board enforces its rules regarding financial aid through the Financial Aid Standards and Services Committee, whose officers and are typically employed by influential member institutions, including key universities’ directors of financial aid.

ALLEGED FINANCIAL AID PRICE-FIXING EXPLAINED

In 2006, College Board implemented new guidance for colleges regarding how to treat applicants with noncustodial parents which was then implemented by 75 schools. In its terms, the College Board specifically encouraged universities to consider the assets of all biological parents, regardless of their level of involvement in a child’s education. The New York Times said of the College Board’s new guidelines:

“Others calculate in stepparents as well, making the assets and incomes of four people fair game. Even if a father hasn't sent a birthday card or paid child support for 15 years, his income can count. And if a stepmother is an investment banker, her income might hurt your chances of getting aid.”

Students of single-parent families may have been directly impacted by having their available parental assets and/or income increase significantly in College Board’s calculations, thereby decreasing their chances or likelihood of qualifying for additional need-based financial aid. The class action states that on average, affected universities’ costs were $6,200 higher than those schools not affected by College Board’s policies.

YOUR RIGHTS AS A STUDENT OR SINGLE PARENT

According to the firm’s lawsuit, College Board’s policies artificially diminish the amount of college financial aid a student may qualify for. These guidelines then fixed the price of higher educational costs, limiting the amount of nonfederal financial aid offered to children in single-parent households or with at least one noncustodial parent. Attorneys believe that college students received less financial aid than they would have, had College Board’s restrictions not been in place. The lawsuit seeks to recover damages related to the alleged price-fixing.

EXPERIENCED COMPLEX LITIGATION LAW FIRM

Hagens Berman is one of the most prominent plaintiffs’ litigation law firms in the U.S. and has achieved settlements valued at more than $320 billion in complex litigation across its practice areas. The firm has successfully taken on higher learning institutions, achieving hundreds of millions of dollars in settlements for students, alumni and tuition payers. Hagens Berman has achieved many record-breaking victories in antitrust matters, and your claim will be handled by attorneys experienced in this area of law.

NO COST TO YOU

In no case will any class member be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team.