Home Nonprofit & Education Education Brown University to pay $19.5M settlement in price-fixing financial aid lawsuit

Brown University to pay $19.5M settlement in price-fixing financial aid lawsuit

By

James Bessette

-

01/24/2024

BROWN UNIVERSITY has agreed to pay $19.5 million as part of a settlement agreement over allegations that the university and 16 other higher education institutions took part in reducing financial aid for students. / COURTESY BROWN UNIVERSITY

PROVIDENCE – Brown University has agreed to pay $19.5 million as part of a settlement in a lawsuit in which the plaintiffs allege that the Ivy League institution and 16 other universities participated in a price-fixing cartel designed to reduce or eliminate financial aid. The lawsuit, which was originally filed two years ago in U.S.

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

Prostate Health: Why Screenings are Key to Men’s Overall Wellness

September is Prostate Cancer Awareness Month. Prostate cancer is the second most common cancer among…

Learn More

No posts to display

LEAVE A REPLY Cancel reply

PROVIDENCE – Brown University has agreed to pay $19.5 million as part of a settlement in a lawsuit in which the plaintiffs allege that the Ivy League institution and 16 other universities participated in a price-fixing cartel designed to reduce or eliminate financial aid. The lawsuit, which was originally filed two years ago in U.S. District Court, alleged that the colleges and universities in question, including Brown, participated in the 568 Presidents Group, and agreed to use what Brown describes as a “common method” to evaluate the financial need of students and their families. This was done after the institutions allegedly exchanged information about their respective financial aid policies and practices, Brown said in a statement late Tuesday evening. The plaintiffs alleged in the suit that Brown and the other colleges and universities involved, including Yale University, Columbia University and the Massachusetts Institute of Technology, violated antitrust laws and had the effect of suppressing financial aid given to students. The universities filed a motion when the suit first came to light to have the case thrown out, but a federal judge in August 2022 allowed it to move forward. Brown, which says it stopped participating in the 568 Presidents Group in 2012 after being with the group for 10 years, denies the allegations, but says it agreed to pay the eight-figure settlement under the condition that the settlement includes Brown not admitting any wrongdoing. “We vehemently believe that the claims had no merit, but given the time and financial resources required to take this case to trial, we determined that our resources are better spent resolving this matter and supporting the education of our students,” Brown spokesperson Brian Clark said. “We’ll continue our commitment to meeting the full financial need of all our students and to continually building upon the generous financial aid and access initiatives in place already.” James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on Twitter at @James_Bessette.