Judge says students must find new lawyers in class action over US college financial aid

A federal judge in Chicago has temporarily upended an antitrust class action lawsuit against a group of elite U.S. universities, stating he was misled by the plaintiffs’ legal team. Judge Matthew Kennelly requires the plaintiffs to find new attorneys to lead the case, which alleges that top universities favor wealthy applicants in financial aid decisions. The plaintiffs have already secured over $300 million in settlements, and a trial was scheduled for November.

The judge’s decision stems from findings that the firm Gilbert Litigators and Counselors (GLC) misrepresented its financial arrangements to the court, falsely claiming its work was “wholly contingent” and expenses were “unreimbursed” when it had actually received $14 million in litigation funding. Berger Montague and Freedman Normand Friedland, the other firms involved, were also criticized for not correcting GLC’s misleading statements.

The judge stated that while he has no issue with litigation funding itself, the misrepresentation has damaged the trust between the court and the legal team. The firms can attempt to transition to new counsel, and the judge will then decide whether to certify the class and appoint the new counsel. The lawsuit accuses 17 universities of violating antitrust law by not considering students’ finances in admissions, and five universities remain as defendants.

(Source：Reuters)