The California Institute of Technology has received final approval to pay $16.8 million in a settlement addressing allegations from a class-action lawsuit that it reduced financial aid packages and manipulated admissions in favor of wealthier students. The settlement was confirmed by U.S. District Court Judge Matthew F. Kennelly in an order issued on June 27, 2025, following an initial approval granted from the bench just a few days earlier.
According to the order, Judge Kennelly described the agreement as an “exceptional result” in the legal proceedings initiated by student plaintiffs against Caltech and other notable institutions. This decision marks one of the latest resolutions in legal actions concerning antitrust practices involving financial aid and preferential treatment in college admissions. The arrangement also includes approved class counsel attorney fees, which amount to approximately $5.6 million, representing a third of the total settlement.
In context with broader litigation related to financial aid practices among elite educational institutions, the case involves several noted universities, including the University of Pennsylvania, Cornell University, and the University of Notre Dame, which are all seeking summary judgment in related proceedings.
The case and its resolution continue to underscore ongoing scrutiny over university admissions and financial aid processes, with potential implications for policies across higher education institutions. For further details, you can read the full article here.