The lawsuit’s plaintiffs, Abigale Pfingsten and Anokhy Desai, initially filed separate claims in mid-2020 after the university declined to adjust tuition despite moving all classes online. The cases were consolidated in August 2020, but proceedings were paused while the Third Circuit reviewed similar lawsuits against Temple University and the University of Pittsburgh. Once those cases moved forward, CMU and the plaintiffs resumed discovery and entered mediation with retired U.S. Magistrate Judge Diane M. Welsh. Though initial talks failed to reach an agreement, both sides continued negotiations until they struck a deal.
Legal Battles and Financial Considerations
The settlement places Carnegie Mellon among the more substantial COVID-era tuition refunds, surpassing Brown University’s $1.5 million deal for 9,500 students and Monmouth University’s $1.3 million settlement for 4,200 students.
Plaintiffs acknowledged the risks of pursuing litigation, as pandemic-related tuition lawsuits remain a relatively untested area of law. “While plaintiffs believe they would have prevailed, proving an implied contract or unjust enrichment posed significant legal hurdles,” the filing stated. “Additionally, litigation would have entailed substantial costs, including expert witnesses and trial expenses.”
How the Settlement Will Be Distributed
Under the agreement, class counsel will seek up to one-third of the settlement fund as fees, with the remainder distributed among students. If less than $250,000 remains after initial disbursement, the funds will be used for a scholarship. If more than $250,000 remains, a second round of payments will be issued.
