"Let Money Talk, Former Students Say In Elite Schools Row"
A high-stakes lawsuit involving 17 elite universities accuses them of colluding to limit financial aid through coordinated admissions practices. This case centers on allegations that these institutions, including Brown, Yale, Columbia, and Dartmouth, formed a price-fixing "cartel" under the guise of need-blind admissions. Plaintiffs, former students, argue that schools prioritized wealthy applicants and favored donors’ children in admissions while falsely claiming to operate on a need-blind basis.
The controversy hinges on Section 568 of the Improving America’s Schools Act of 1994, which grants limited antitrust immunity to schools with genuine need-blind admissions policies. Six of the schools, including Brown and Dartmouth, have stated they won’t use Section 568 as a defense. However, plaintiffs insist that these institutions cannot avoid scrutiny of their admissions and fundraising practices, as the material is critical to revealing a broader conspiracy.
U.S. District Judge Matthew Kennelly initially allowed the case to proceed, rejecting the schools’ immunity claims. Recently, the plaintiffs urged the court to deny the schools’ request to shield certain documents, claiming these records are vital to proving favoritism toward affluent families. Alleged evidence includes donations like former Sony Pictures CEO Michael Lynton's $1 million gift, reportedly made to secure his daughter's admission to Brown.
Eric Rosen, a prominent attorney from Freedman Normand Friedland LLP, now a partner at Dynamis LLP, and former lead prosecutor in the Varsity Blues scandal, represents the plaintiffs. Rosen and his team argue that the schools’ coordinated approach to financial aid discouraged competition, driving up attendance costs for students across two decades. This case could expose long-standing inequities in the admissions processes at top-tier universities, potentially reshaping the transparency and fairness of financial aid distribution.