Ramey et al. v. The Pennsylvania State University

The class action being settled is captioned Ramey et al. v. The Pennsylvania State University, Case No. 2:20-cv-00753-RJC (W.D. Pa.). This case is a putative class action, meaning that the Settlement Class Representatives—Benjamin Ramey, Jeffrey Binet, and Tyler Thomson—brought this Action as individuals acting on behalf of a putative class of all people who paid tuition and/or fees for the Spring 2020 semester at Penn State. The Settlement Class Representatives allege claims of breach of contract and unjust enrichment. After motions practice and a comprehensive mediation, the Parties came to the proposed Settlement.

If you received notice of this lawsuit, Penn State’s records indicate that you were enrolled at Penn State during the Spring 2020 semester and were assessed tuition and/or fees that are the subject of this Action. The Court directed the notice be made available to all Potential Settlement Class Members because each member has a right to notice of the proposed Settlement and the options available to them before the Court decides whether to approve the proposed Settlement.

If you were a student enrolled at Penn State, including all commonwealth campuses and branch locations, during the Spring 2020 semester, and you paid tuition and/or fees to attend at least one in-person class, then you potentially qualify as a Settlement Class Member.

In any lawsuit, there are risks and potential benefits that come with litigating as compared to settling. It is the Settlement Class Representatives’ and their lawyers’ (“Class Counsel”) job to identify when a proposed Settlement offer is sufficient and justifies settling the case instead of continuing to litigate. In a class action, class counsel determines when to recommend settling to the class representatives. The class representatives then have a duty to act in the best interests of the class as a whole when deciding whether to accept this recommendation. In this case, it is the belief of the Settlement Class Representatives and Class Counsel that this proposed Settlement is in the best interest of all Settlement Class Members.

Penn State denies the claims asserted and believes that its actions were proper and in accordance with the terms of its policies, agreements, and applicable law. Penn State denies that its actions give rise to any claim by the Settlement Class Representatives or any Settlement Class Members. However, given the benefit Penn State and its students will receive from a negotiated settlement and prompt resolution of the case, the Parties consider it desirable to resolve the Action.

The Court must decide that the proposed Settlement is fair, reasonable, and adequate before it will approve the proposed Settlement. At this time, the Court has already reviewed and decided to grant preliminary approval of the proposed Settlement, after which notice was disseminated to Potential Settlement Class Members. The Court will make a final decision regarding the proposed Settlement at a Final Approval Hearing, which is currently scheduled for February 18, 2025 at 1:30 pm EST.

If you are a Potential Settlement Class Member, you have three options with respect to this proposed Settlement: (1) do nothing and be eligible to participate in the proposed Settlement and receive the Settlement Benefit allocated to you according to the terms of the proposed Settlement; (2) opt out of the proposed Settlement; or (3) participate in the proposed Settlement, but object to it. Each of these options is described further below.

If you do nothing and the proposed Settlement is approved by the Court, you will be eligible to participate in the proposed Settlement and to receive the Settlement Benefit allocated to you according to the terms of the proposed Settlement. Your payment will be sent automatically by First-Class Mail to your last known permanent postal address on file with Penn State. Settlement Class Members will also have the option, but are not required, to choose one of the following selections: (a) provide an updated address for sending a check; or (b) elect to receive the Settlement Benefit by Venmo or PayPal instead of a paper check. These selections can be made online on the Address Change/Payment Selection page here. These actions must be taken no later than forty-five (45) days after the Effective Date, as defined in the proposed Settlement which is available here. That date will also be posted on this Settlement Website when it is known, but it will be some time after the Final Approval Hearing, which is currently scheduled for February 18, 2025, at 1:30 pm EST.

The deadline to exclude yourself from and/or object to the proposed Settlement has passed.

The deadline to exclude yourself from and/or object to the proposed Settlement has passed.

No. If you do nothing and the proposed Settlement is approved by the Court, you will be eligible to participate in the proposed Settlement and to receive the Settlement Benefit allocated to you according to the terms of the proposed Settlement. Your payment will be sent automatically by First-Class Mail to your last known permanent postal address on file with Penn State. Settlement Class Members will also have the option to (a) provide an updated address for sending a check; or (b) elect to receive the Settlement Benefit by Venmo or PayPal instead of a paper check. These selections can be made online on the Address Change/Payment Selection page here. These actions must be taken no later than forty-five (45) days after the Effective Date, as defined in the proposed Settlement which is available here. That date will also be posted on this Settlement Website when it is known, but it will be some time after the Final Approval Hearing, which is currently scheduled for February 18, 2025, at 1:30 pm EST.

If you opt out of the proposed Settlement, you will preserve any claims you may have against Penn State related to Penn State’s transition to remote learning during the Spring 2020 semester. However, you will not be entitled to receive a payment from this proposed Settlement, assuming the proposed Settlement is approved by the Court. Be aware that the statute of limitations may impact your ability to bring a claim.

The deadline has passed to exclude yourself from the proposed Settlement.

The deadline has passed to object to the proposed Settlement.

The deadline has passed to object to the proposed Settlement.

The deadline to exclude yourself from and/or object to the proposed Settlement has passed.

The deadline to exclude yourself from and/or object to the proposed Settlement has passed.

The Parties have agreed to a Settlement Fund of $17,000,000.

As discussed in more detail below, attorneys’ Fee Award and Litigation Expenses, Case Contribution Awards for the Settlement Class Representatives, and administrative fees, including the Administrative Expenses paid to a third-party Settlement Administrator, will be paid out of the Settlement Fund. Thereafter, the remaining funds—the Net Settlement Fund—will be divided among all Settlement Class Members entitled to payments as outlined in the proposed Settlement and discussed further below in FAQ 20.

Class Counsel will request that the Court approve a Fee Award of no more than thirty-three and one-third percent (33.33%) of the Settlement Fund and that Class Counsel be reimbursed for their out-of-pocket Litigation Expenses incurred in litigating the Action. Class Counsel must submit their request to the Court by December 23, 2024, at which point the amount of the requested attorneys’ fees, as well as Class Counsel’s motion, will be published on the Settlement Website at www.PennStateTuitionRefundSettlement.com. The Court will then decide the amount of the attorneys’ Fee Award based on a number of factors, including the risk associated with bringing the Action, the amount of time spent on the case, the magnitude and complexity of the Action, the quality of the work, and the requested fee in relation to the outcome of the Action.

Class Counsel will request that the Settlement Class Representatives, Benjamin Ramey, Jeffrey Binet, and Tyler Thomson, each be paid a Case Contribution Award in the amount of no more than $5,000, in recognition of their work in connection with this case. The award must be approved by the Court.

A third-party Settlement Administrator was retained to provide notice and administer the payments to Settlement Class Members. The expenses of the Settlement Administrator are projected to not exceed $175,000. In the event that such expenses exceed $175,000, such additional amounts shall be paid only after approval by both Class Counsel and Penn State’s Counsel.

The balance of the Settlement Fund after paying Administrative Expenses, a Fee Award to Class Counsel, and Case Contribution Award to the Settlement Class Representatives, will be known as the Net Settlement Fund. Any Settlement Class Member who withdrew for medical reasons from Penn State after March 16, 2020, but before the conclusion of the Spring 2020 semester, and received a refund of tuition, shall be entitled to receive fifty dollars ($50) from the Net Settlement Fund. The remainder of the Net Settlement Fund will be distributed equally to all other Settlement Class Members.

The Court will hold a Final Approval Hearing on February 18, 2025, at 1:30 pm EST, to consider whether the proposed Settlement should be approved. If the Court approves the proposed Settlement, then payments will be distributed within sixty (60) days of the date after which the proposed Settlement becomes Final, as defined in the Settlement Agreement.

The Court will hold a Final Approval Hearing on February 18, 2025, at 1:30 pm EST, at the United States District Court for the Western District of Pennsylvania, Joseph F. Weis, Jr. U.S. Courthouse, Courtroom 8C, 700 Grant Street, Pittsburgh, PA 15219. At this hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate. If objections have been properly submitted, the Court will consider them. The Court may also decide how much to award Class Counsel for attorneys’ fees and litigation costs and the amount of the award to the Settlement Class Representatives. The hearing will be public. The hearing may be virtual, in which case the instructions for viewing the hearing and participating will be posted on this Settlement Website. The date and time of the Final Approval Hearing may change without further notice. Please check the Settlement Website for updates.

No. Class Counsel will answer any questions the Court may have. You may attend if you desire to do so. If you have properly submitted an objection, the Court will consider your objection regardless of whether you attend.

If you are a Settlement Class Member, you may ask the Court for permission to speak at the Final Approval Hearing. If you are objecting and would like to speak at the Final Approval Hearing, you must state in your objection, as described in FAQ 12 above, that you wish to be heard at the Final Approval Hearing.

The Court has ordered that Gary F. Lynch and Nicholas A. Colella of Lynch Carpenter, LLP; Paul J. Doolittle of Poulin | Willey | Anastopoulo, LLC; and Joseph I. Marchese and Sarah Westcot of Bursor & Fisher, P.A will serve as Class Counsel and will represent all Settlement Class Members in this matter.

No. Class Counsel will be paid directly from the Settlement Fund, subject to the Court’s approval.

The Court will be asked to approve the amount of attorneys’ fees at the Final Approval Hearing. Class Counsel will file an application for a Fee Award, which shall not exceed thirty-three and one-third percent (33.33%) of the Settlement Fund, plus their out-of-pocket litigation costs, and will specify the amount being sought. Class Counsel must submit its request to the Court by December 23, 2024, at which point the amount of the requested attorneys’ fees, as well as Class Counsel’s motion, will be published on this Settlement Website. Settlement Class Members who would like to object to the amount of attorneys’ fees sought by Class Counsel may do so by following the instructions described in FAQ 12 above.