The University of Delaware has reached a $6.3 million settlement in a class-action lawsuit filed by students over the abrupt shift to online learning during the spring 2020 COVID-19 pandemic. This settlement allows for approximately 21,000 eligible students to receive compensation for the disruption to their in-person education.
Despite agreeing to the settlement, the university maintains that it acted appropriately in closing its campus and transitioning to remote instruction. The agreement, signed by university president Dennis Assanis and the plaintiffs, acknowledges no wrongdoing on the part of the institution.
The settlement, awaiting final court approval, will distribute the funds through an escrow account managed by a designated administrator. Plaintiffs' attorneys will receive $2.1 million in fees and up to $250,000 for expenses. Each of the five named plaintiffs will also receive $5,000. The remaining funds will be divided equally among eligible students who paid tuition and fees for the spring 2020 semester and choose not to opt out of the settlement.
Students can expect to receive their reimbursements via mail or through digital payment platforms like Venmo or PayPal after providing updated contact information through a dedicated settlement website.
This settlement follows a March ruling by Judge Stephanos Bibas, who certified the case as a class action, rejecting the university's arguments regarding student standing and the complexities of tuition payments from various sources. Judge Bibas emphasized that students who used scholarships were still entitled to be part of the class action, as they were equally affected by the breach of contract.
The students' lawsuit contended that the university had implicitly promised in-person instruction and access to campus facilities, charging higher tuition for in-person courses compared to online alternatives. They also argued that they were unfairly charged fees for services like the gym, student centers, and health center, which were inaccessible during the campus closure.