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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.

Legal representatives for the students include Nicholas Colella, Gary F. Lynch, and Kelly K. Iverson of Lynch Carpenter LLP; Sarah Westcot and Philip Lawrence Fraietta of Bursor & Fisher PA; Jason C. Tetlow of Tetlow Law PC; and Edward W. Ciolko of Sterlington PLLC.

Carnegie Mellon is represented by Jeffrey M. Weimer, Catherine S. "Casey" Ryan, and Daniel I. Booker of Reed Smith LLP.

With the court’s preliminary approval, the settlement moves closer to resolving a dispute that underscores the financial and legal ripple effects of the pandemic on higher education.