A federal judge ruled Aug. 8 that Northwestern University must face a class action lawsuit alleging the school conspired with 31 other elite universities to inflate tuition through the early decision admissions process.
U.S. District Judge Angel Kelley, sitting in Massachusetts, denied a joint motion to dismiss filed by the universities, finding in a 28-page order that the plaintiffs plausibly alleged an antitrust conspiracy. The case now moves to discovery.
The ruling is the latest legal challenge facing Evanston's largest employer and economic anchor. Northwestern's undergraduate tuition for the 2025–26 academic year is $69,375, with total cost of attendance estimated at $96,236. For 2026–27, tuition rises to $71,802 and total costs reach $99,375, according to the university's financial aid office.
What the lawsuit alleges
Students filed the complaint in August 2025, claiming the 32 schools violated the Sherman Antitrust Act by agreeing not to compete for students admitted through one another's early decision programs. Under early decision, applicants receive a better chance of acceptance but must commit to enroll if admitted, preventing them from comparing financial aid offers from competing schools.
The plaintiffs argue that this binding commitment strips students of bargaining power. Judge Kelley agreed, writing that once admitted early decision, students lose all bargaining power because they cannot credibly threaten to go elsewhere since the schools have agreed not to entertain offers from those students.
The Daily Northwestern reported that the plaintiffs contend early decision applicants' applications signal willingness to pay higher prices, and that schools enforce binding agreements by colluding with competitors rather than relying on students to honor the terms.
Northwestern's response
Northwestern, along with Duke, Cornell, Columbia, Amherst, Wesleyan and other defendant schools, has denied wrongdoing. In their October 2025 joint motion to dismiss, the universities called the claims "implausible speculation" and argued the complaint lacked the factual allegations required to support the conspiracy theory.
Judge Kelley disagreed, pointing to a joint statement signed by multiple schools committing not to compete for students admitted through another institution's early decision program as direct evidence of allegedly anticompetitive conduct.
What comes next
The plaintiffs are seeking class certification for early decision applicants since 2021 and some students who enrolled through regular decision. The proposed class could include tens of thousands of students who attended the 32 schools over the past four years.
Judge Kelley also ruled that each semester of allegedly inflated tuition counts as a new injury under the statute of limitations, meaning students who enrolled as far back as 2019 may be eligible to join the case.
The court dismissed claims against non-school defendants, including the Consortium on Financing Higher Education, Common App and Scoir, finding insufficient evidence those organizations entered the alleged conspiracy.
Edward Diver, an attorney at Langer Grogan and Diver representing the student plaintiffs, told The College Fix in September 2025 when the lawsuit was filed that "the system harms students, particularly disfavors price-sensitive applicants, and allows schools to raise tuition — all because of collusive behavior that violates antitrust law."
This case is separate from the $43.5 million financial aid settlement in which Northwestern and 16 other schools resolved claims they colluded to reduce financial aid awards. No specific dates for class certification hearings or discovery deadlines have been announced.
