Federal Judge Denies Grand Canyon’s Motion to Dismiss Students’ RICO Lawsuit
FOR IMMEDIATE RELEASE
May 8, 2025
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Federal Judge Denies Grand Canyon’s Motion to Dismiss Students’ RICO Lawsuit
Ruling is one of the first federal court decisions in recent years that RICO claims against a for-profit education company are actionable
Washington, D.C. — A U.S. District Court Judge allowed a class action lawsuit brought by current and former Grand Canyon University (GCU) students to advance against GCU’s affiliate Grand Canyon Education, Inc. (GCE). The decision allows the students to proceed on four of the five original counts, including a RICO (Racketeer Influenced and Corrupt Organizations Act) claim, with the opportunity to amend its other RICO claim.
“Deceptive graduate programs looking to profit off federal loans are a growing problem in the higher education landscape and are turning graduate student lending into a runaway train,” said Student Defense attorney Chris Bryant. “This is the first step in holding Grand Canyon accountable for misleading graduate students about the cost of their education.”
"This ruling is a significant milestone in holding for-profit higher education institutions accountable,” added DiCello Levitt Partner Pete Soldato. “We're committed to seeking justice for those impacted and ensuring educational institutions are transparent and honest."
The students’ complaint, filed in June 2024 in the U.S. District Court for the District of Arizona by Student Defense and the law firm DiCello Levitt, alleges that from 2017 on, GCE misled prospective students about the cost of doctoral degrees at GCU. GCU doctoral students allege that GCE induced them to enroll by promoting false and unattainable “estimated tuition” and “total estimated cost” data:
“For thousands of students like Plaintiffs and the other Class members, who enrolled in doctoral programs with dissertation requirements at Grand Canyon University, GCE’s fraud caused them collectively to incur tens of millions of dollars in losses as result of either having to pay more to obtain doctoral degrees or, for many of them, having to leave those programs without ever graduating due to the unexpected costs.”
GCU disbursed the most Title IV Direct Loans of all institutions participating in the programs from 2022-2024. The U.S. Department of Education fined GCU $37.7 million in 2023 for misrepresenting the cost of its doctoral programs. GCU filed a notice to the Department in November 2023 that it was appealing the fine action.
Read the full complaint on the Student Defense website.
About Student Defense
The National Student Legal Defense Network (“Student Defense”) is a non-profit organization that works through litigation and advocacy to advance students' rights to educational opportunity, and to ensure that higher education provides a launching point for economic mobility.
About DiCello Levitt
At DiCello Levitt, we’re dedicated to achieving justice for our clients through class action, environmental, mass tort, securities, financial services, antitrust, business-to-business, public client, whistleblower, personal injury, and civil and human rights litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.
DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. For more information about the firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.