University of Chicago settles Federal Financial Aid Suit

Again just a couple quick notes.

Class actions require court approval for settlements, with absent class members getting a chance to object, because they will end up binding on class members who do not opt out of the settlement. This process can take a while in complex cases, including antitrust class actions. At this stage, any settlement that is for significant money is likely to get approved, but things happen.

It is very common for antitrust plaintiffs to have a strategy of “rolling” (or some such) defendants such that the earlier you settle, the less proportionately you have to pay, particularly if you provide meaningful cooperation. Details of documents and other information provided by an early settling defendant sometimes show up in an Amended Complaint.

The idea is to put pressure on individual defendants to settle sooner rather than later. It doesn’t always work, but sometimes the first settlement at least triggers a partial wave of additional settlements.

Anyway, it will be interesting to see how this progresses.

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