Susquehanna University has reached a settlement of $675,000 in a class-action lawsuit regarding the closure of its campus and the transition to remote instruction during the COVID-19 pandemic in the spring semester of 2020.
The proposed settlement notice, which was filed in U.S. Middle District Court on Thursday, states that the university denies any liability but is in favor of the preliminary approval of the lawsuit.
Students who filed lawsuits against colleges and universities, including Susquehanna, argued that they were entitled to a pro rata refund of their tuition and fees. They asserted that since they did not have access to in-person instruction and campus facilities, they should be reimbursed accordingly.
Around 2,150 students will receive a notification informing them that they have the choice to take part in the settlement.
Judge Matthew W. Brann cannot approve the settlement until after notification has been made and an approval hearing has taken place.
Participants in the settlement will receive a portion of the $675,000, which will be adjusted to account for attorney fees, litigation costs, and expenses for the settlement administrator, as approved by the court.
Before distributing the payments, the administrator will ensure that all legally mandated taxes are paid.
The attorneys have reached an agreement to only request a maximum of one-third of the $675,000 for their fees.
David Gladfelter, a Pennsylvania resident and former student at Susquehanna, filed the lawsuit.
In August, Bucknell University reached a settlement of $1.15 million in a similar lawsuit, which has the potential to affect around 3,500 students.
No court activity has been reported in the case since the settlement was filed.
Penn State has reached a settlement of $17 million in a lawsuit that also demanded a refund for the loss of in-person instruction. The $17 million will be distributed among approximately 72,000 former students after deducting taxes and legal fees.