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Judge Signs Tentative Tuition Settlement Agreement

Contact: Jennifer Hollingshead
Office: (573) 882-0601

Judge Signs Tentative Tuition Settlement Agreement

A St. Louis County Circuit Court judge has tentatively approved a legal settlement between the University of Missouri and the plaintiffs in a class action law suit regarding educational fees, including three former students. The three students have sued claiming that state statutes did not allow the University of Missouri to charge tuition during their time of attendance.

Under the tentatively approved agreement, the University would place $10 million in a scholarship fund, which would create scholarships for qualifying students and their spouses and children at the University of Missouri. Qualifying students attended the University of Missouri as resident undergraduates between January 1995 and August 2001 and were above the age of 16 and below the age of 22. After 25 years, any remaining money will be placed in the University's General Scholarship Fund.

Approximately 104,000 current and former students and their spouses and children may qualify for scholarships. The agreement is subject to the court's final approval.

"The University of Missouri is pleased that this matter is close to being resolved. We look forward to a final determination of the court," UM President Elson S. Floyd said. "The settlement will benefit students who wish to further their education at the University of Missouri."

Notification of affected students would not begin until after a final ruling.

The University of Missouri has also tentatively agreed to pay $1 million to the plaintiffs' attorney; $17,000 to the plaintiff attorney for out-of-pocket expenses; $27,000 to be divided among the three named plaintiffs; and other administrative costs expected not to exceed $100,000.

The University and the plaintiffs will have to return to court after working with an actuary to set the terms and conditions of the scholarship. When all terms and conditions of scholarships are complete, all parties will present the entire settlement again to the court for preliminary approval to receive direction for notifying affected class members of the settlement.

If you would like to receive additional information concerning this tentative settlement, call (573) 882-8423.

Reviewed 2010-06-16