Webster University recently agreed to a $250,000 settlement following a class action lawsuit that accused the university of overcharging students for services that became inaccessible during the COVID-19 pandemic. The case stemmed from the spring 2020 semester when campus closures disrupted normal operations. Students argued that fees for activities, housing, parking, and meal plans were unjustifiable once the university shifted to remote learning.
The settlement primarily aims to reimburse students for fees paid for on-campus services they couldn’t utilize. Full-time, in-person students, particularly those in Missouri with significant unused meal plan balances, stand to benefit. While Webster University denied any wrongdoing, the settlement provides financial relief and a resolution to the allegations.
Webster University Agrees to $250K COVID Fees Settlement
The $250,000 settlement has been divided into two distinct funds to address specific claims:
- Fee Class Fund ($168,500): This portion covers payments related to:
- Student activity fees
- Housing activity fees
- Parking fees
- Meal Plan Class Fund ($81,500): This fund applies to Missouri students who had meal plan balances exceeding $1,029 as of March 27, 2020.
Each eligible student will receive a proportional share of the funds, ensuring compensation aligns with their individual financial impact.
Eligibility Criteria for Settlement Payments
Students who are eligible for the settlement fall into two primary categories:
- Fee Class Members: Full-time, in-person students charged fees for activities, parking, or housing during the spring 2020 semester.
- Meal Plan Class Members: Students in Missouri with a meal plan balance exceeding $1,029 by late March 2020.
The broad eligibility criteria ensure that a significant number of students affected by the closures are included.
Allegations Against Webster University:
The lawsuit alleged that Webster University continued to charge fees for in-person activities and services that became unavailable due to COVID-19 campus closures. Specific complaints included:
- Fees for student and housing activities that did not occur.
- Parking fees for facilities students could not access.
- Unreturned meal plan balances after campus dining facilities were closed.
The plaintiffs argued that these charges were unfair and unjustified once the campus shifted to remote learning. Webster University, while denying these allegations, opted to settle the case to avoid prolonged litigation.
How Students Will Receive Compensation
The settlement process has been designed to ensure simplicity for affected students:
- Automatic Payments: No claim form is required. Students who meet the eligibility criteria and do not opt out will automatically receive a payment.
- Proportional Distribution: Payment amounts will depend on the specific fees paid or unused meal plan balances for each student.
By streamlining the process, the settlement minimizes additional effort for students seeking reimbursement.
- Exclusion or Objection Deadline: January 16, 2025
- Final Approval Hearing: February 15, 2025
These dates provide students an opportunity to either object to the settlement terms or exclude themselves from the class action.
The Broader Implications of the Settlement
This settlement is part of a larger trend of holding institutions accountable for financial practices during the pandemic. Similar lawsuits against universities across the United States have raised questions about how fees should be handled when in-person services are disrupted.
The Webster University case highlights the importance of transparency in fee structures and ensuring students are not charged for services they cannot access. Although the settlement amount may not cover all student grievances, it represents a meaningful step toward rectifying pandemic-related financial injustices.
How Webster University Addressed the Lawsuit
Webster University’s agreement to settle for $250,000 without admitting wrongdoing reflects its willingness to resolve the issue amicably. By avoiding a prolonged legal battle, the university aims to restore trust among its student body while addressing concerns about fairness.
This approach underscores the importance of finding balanced solutions to complex issues like those presented during the pandemic, which created unprecedented challenges for both students and institutions.
What This Means for Students
The $250,000 settlement offers a measure of relief for students who paid fees for services that became inaccessible during the COVID-19 campus closure. By ensuring proportional payments and simplifying the claims process, Webster University has provided an example of how disputes arising from pandemic-related disruptions can be resolved fairly.
For eligible students, this settlement represents a financial acknowledgment of their grievances, ensuring that they are partially compensated for the losses they incurred during a challenging time. The case also sets a precedent for accountability and fairness in the education sector.