Accusations of racketeering and deceitful marketing practices are at the forefront of a class-action lawsuit filed against Grand Canyon Education Inc., the for-profit entity associated with Grand Canyon University. The lawsuit, championed by former doctoral students, alleges that they were misled about the costs of their doctoral programs. According to a report by FOX 10 Phoenix, the plaintiffs argue that GCE used sophisticated means to promote GCU, amounting to the operations of a "RICO enterprise."
The heart of the lawsuit, reported by AZ Family, contends that students were entrapped by an advertised estimate of $39,000 for 60 credit hours, only to find later hidden fees and extra charges for "continuation courses." Attorney Adam Levitt encapsulated the concerns, stating, "Choosing to pursue a doctoral degree is one of the most expensive and life-shaping decisions many people make, and they deserve to know the true cost that they're committing to." Filed this week, the suit accuses GCU of racketeering and violating consumer protection laws between 2017 and October 2023.
Grand Canyon University, in response to earlier criticism, was already grappling with a $37-million fine from the Department of Education for similar concerns last year. While the university has appealed the penalty, the audit conducted by the state found no wrongdoing on GCU's part, as stated by the University President Brian Mueller. Furthermore, Eric Rothschild, litigation director for the National Student Legal Defense Network, accused GCU of exploiting students by imposing extra charges when they were nearing the completion of their programs.
In a statement obtained by FOX 10, the university's defense underlined that the allegations being pressed against them are baseless. Grand Canyon University's communication director, Bob Romantic, addressed them as a mere "regurgitation" of accusations already disproved, invoking favorable rulings in federal court and endorsements from its accreditor and state-approving agency as evidence. Using GCU's students' doctoral disclosures, the lawsuit is contested as misleading and reliant on selectively cropped documents.
The conflict comes on the heels of a December lawsuit by the Federal Trade Commission against the university, alleging deceptive advertising and illegal marketing practices. Romantic remarked on this issue, seeing it as an example of the Biden Administration's attempt to target institutions they are ideologically opposed to. Romantic also said that claims about the doctoral program have been disproved twice in federal courts and were "not substantiated by other objective third parties." Grand Canyon University, an institution that achieved nonprofit status in 2018, views the class action as part of a pattern of unfounded targeting and is ready to explore all legal options to defend itself.
