Ninth Circuit Denies USC’s Petition to Appeal Class Certification in Lawsuit Over Deceptive Enrollment Scheme

FOR IMMEDIATE RELEASE
July 18, 2025

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Ninth Circuit Denies USC’s Petition to Appeal Class Certification in Lawsuit Over Deceptive Enrollment Scheme

The United States Court of Appeals for the Ninth Circuit denied a petition filed by the University of Southern California (USC) to appeal a decision made by a federal judge allowing a case brought by four graduate students to proceed as a class action suit.

The lawsuit was filed in December 2022 by former USC students represented by Student Defense and Tycko & Zavareei LLP. It alleges that USC misreported data to U.S. News and World Report in order to inflate the rankings of the USC Rossier Graduate School of Education and entice students to enroll in the school’s online-degree programs run with its for-profit partner, 2U, Inc.

The court certified the class of USC Rossier graduate students after the plaintiffs presented evidence that USC had reported incomplete and false data for many of the criteria U.S. News and World Report uses to determine its school rankings.

“Students paid a premium to attend programs based on a fraudulent ranking that USC used to expand its online enrollment. Now the courts are sending a message to USC and institutions across the country that they can be held accountable,” said Student Defense Senior Counsel Chris Bryant.

The lawsuit seeks restitution as well as actual and punitive damages for students enrolled in these online programs.