Carnegie Mellon University has agreed to pay $4.8 million to settle claims that it should have refunded tuition and fees to students whose courses were abruptly moved online at the onset of the COVID-19 pandemic. The proposed class action settlement, filed in a Pittsburgh federal court on Friday, marks a significant chapter in the ongoing legal battles over pandemic-era tuition disputes.
A Long Road to Compensation
The settlement will benefit up to 13,337 students enrolled at Carnegie Mellon during the spring 2020 semester, after deducting up to $1.6 million in legal fees and costs for class counsel Lynch Carpenter LLP and Bursor & Fisher PA. The final payout per student will depend on how many opt out and how much financial aid or refunds they previously received. However, every eligible student is guaranteed at least $50.
Students alleged that the university had promised and charged for in-person education and on-campus services but failed to deliver when it shifted to remote learning in response to the pandemic. “Plaintiffs allege that CMU contracted with, charged, and collected funds for an on-campus experience but failed to uphold its end of the bargain,” the legal brief stated.
Carnegie Mellon Stands Firm but Settles
Despite the settlement, Carnegie Mellon denied any wrongdoing. A university spokesperson reaffirmed the institution’s stance, stating, “CMU acted in the best public health interests of our students, faculty, and staff by moving to remote instruction, as did most universities nationwide. While we dispute the allegations, we are settling to avoid prolonged litigation and associated costs.”
