News Summary
The University of Pennsylvania has announced its appeal of a federal judge’s ruling that allows a multi-billion dollar price-fixing lawsuit to proceed to trial. This lawsuit alleges that the university and 16 other elite institutions colluded to limit financial aid for students, impacting around 200,000 individuals over two decades. With potential damages nearing $2 billion, the case exemplifies growing scrutiny over the financial practices of higher education institutions. The court previously dismissed Penn’s efforts to have the case thrown out before reaching a jury.
Philadelphia: University of Pennsylvania Appeals Price-Fixing Trial Decision
Philadelphia, PA – The University of Pennsylvania (Penn) has formally appealed a federal judge’s recent decision, renewing its efforts to avoid a jury trial in a multi-billion dollar price-fixing lawsuit. The case, which accuses Penn and several other elite universities of colluding to limit student financial aid, is poised to proceed to trial after a judge denied Penn’s request for dismissal. Penn challenged the ruling on Tuesday, February 11, 2026, after previously arguing on February 10, 2026, that the lawsuit should be thrown out before reaching a jury.
The lawsuit, initially filed in 2022, alleges that Penn and 16 other universities engaged in a “price-fixing cartel” by coordinating their financial aid practices. This alleged collusion purportedly resulted in decreased financial aid awards for approximately 200,000 students over a two-decade period. If found liable, Penn and the four other universities that have not settled the claims could face damages totaling approximately $2 billion.
Background of the Allegations
The core of the lawsuit revolves around the “568 Presidents Group,” a consortium of selective universities that collaborated on financial aid policies. This group operated under a temporary federal antitrust exemption, Section 568 of the Improving America’s Schools Act of 1994, which permitted such collaboration under the condition that all students admitted were done so on a need-blind basis. Plaintiffs in the case claim that member institutions used this arrangement to limit competition and artificially inflate tuition prices. The temporary antitrust exemption expired in September 2022, and the 568 Presidents Group formally dissolved in November 2022.
Penn, along with Cornell University, Georgetown University, the Massachusetts Institute of Technology, and the University of Notre Dame, are the five remaining institutions that have not reached a settlement. Several other universities originally named in the complaint have already settled, collectively paying nearly $320 million to resolve the claims against them.
University’s Defense and Judicial Rulings
In its appeal and earlier motions, Penn and the other appealing universities have argued that their actions were not unlawful under federal antitrust laws, citing the exemption that applied to institutions practicing need-blind admissions. They contend that their conduct did not constitute explicit price fixing. Penn specifically stated its withdrawal from the 568 Presidents Group in 2020, asserting it did so to offer more flexible financial aid awards to students.
Despite these arguments, a federal judge, Matthew Kennelly of the U.S. District Court for the Northern District of Illinois, denied the universities’ motion for summary judgment. The judge concluded that a jury could reasonably find that an agreement existed among the schools to violate antitrust laws. This ruling necessitates that the case proceed toward trial rather than be dismissed before being presented to a jury.
Broader Context of Higher Education Scrutiny
This price-fixing lawsuit is not the only legal challenge Penn’s financial aid and admissions practices have faced recently. In August 2025, a separate lawsuit was filed, accusing Penn and numerous other universities of artificially inflating the cost of attendance through the use of binding early decision admissions programs. Furthermore, Penn also faced a lawsuit concerning its financial aid policies for students with divorced or separated parents, although a federal judge dismissed that case in September 2025, ruling that the plaintiffs failed to adequately demonstrate harm. These cases highlight increasing nationwide scrutiny over antitrust concerns in higher education, often involving allegations of collusion in pricing, including tuition and financial aid.
Frequently Asked Questions
What is the primary subject of the news article?
The news article primarily covers the University of Pennsylvania’s appeal of a federal judge’s decision to proceed to trial in a multi-billion dollar price-fixing lawsuit.
Which entities are involved in the price-fixing lawsuit?
The lawsuit involves the University of Pennsylvania and four other universities, namely Cornell University, Georgetown University, the Massachusetts Institute of Technology, and the University of Notre Dame, as the remaining defendants. The lawsuit was filed by students.
What are the main allegations in the lawsuit?
The lawsuit alleges that Penn and 16 other universities engaged in a “price-fixing cartel” by coordinating financial aid practices, which purportedly resulted in decreased financial aid awards for approximately 200,000 students over a two-decade period. The alleged overcharge is $685 million, which could triple to over $2 billion under U.S. antitrust laws.
When was the lawsuit originally filed?
The lawsuit was initially filed in 2022.
What was the “568 Presidents Group”?
The “568 Presidents Group” was a consortium of selective universities that collaborated on financial aid policies under a temporary federal antitrust exemption, Section 568 of the Improving America’s Schools Act of 1994. This exemption expired in September 2022, and the group formally dissolved in November 2022.
What arguments has Penn made in its defense?
Penn and the other appealing universities have argued that their actions were not unlawful under federal antitrust laws, citing the exemption that applied to institutions practicing need-blind admissions. They contend that their conduct did not constitute explicit price fixing. Penn also stated it withdrew from the 568 Presidents Group in 2020 to offer more flexible financial aid awards.
What was the judge’s ruling on Penn’s request for dismissal?
A federal judge, Matthew Kennelly of the U.S. District Court for the Northern District of Illinois, denied the universities’ motion for summary judgment, concluding that a jury could reasonably find that an agreement existed among the schools to violate antitrust laws. This decision requires the case to proceed to trial.
Have any universities settled in this lawsuit?
Yes, several universities originally named in the complaint have already reached settlements, collectively paying nearly $320 million to resolve the claims against them. Twelve of the original 17 defendants have settled.
Are there other legal challenges facing Penn regarding admissions and financial aid?
Yes, Penn’s financial aid and admissions practices have faced other legal scrutiny. A separate lawsuit filed in August 2025 accuses Penn and other universities of artificially inflating attendance costs through binding early decision admissions. Additionally, a case regarding financial aid policies for students with divorced or separated parents was dismissed in September 2025.
Key Features of the Price-Fixing Lawsuit
| Feature | Description | Scope |
|---|---|---|
| Primary Event | University of Pennsylvania appealing a federal judge’s decision to proceed to trial in a price-fixing lawsuit. | Nationwide |
| Date of Penn’s Appeal | Tuesday, February 11, 2026. Penn argued for dismissal on February 10, 2026. | Nationwide |
| Case Origin | Filed in 2022 against 17 universities in a U.S. District Court in Illinois. | Nationwide |
| Alleged Scheme | Accusations of a “price-fixing cartel” by the “568 Presidents Group” to decrease financial aid awards. | Nationwide |
| Impacted Students | Approximately 200,000 students over a 20-year period. | Nationwide |
| Potential Damages | Up to approximately $2 billion for remaining defendants. | Nationwide |
| Remaining Defendants | Penn, Cornell University, Georgetown University, MIT, and University of Notre Dame. | Nationwide |
| Settlements to Date | Nearly $320 million paid by 12 of the original 17 defendant universities. | Nationwide |
| Penn’s Defense Stance | Argues actions were lawful under antitrust exemption for need-blind institutions and denies explicit price fixing. Penn withdrew from the group in 2020. | Nationwide |
| Judge’s Decision | Denied motion for summary judgment, allowing the case to proceed to trial. | Nationwide |
| Related Legal Scrutiny | Separate lawsuit filed in August 2025 regarding binding early decision admissions; dismissed case in September 2025 regarding financial aid for divorced parents. | Nationwide |
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