New Cases and Developments

NACUA's Legal Resources staff summarizes current higher education cases and developments and provides the full text of selected cases to members. New cases and developments are archived here for up to 12 months.  Cases provided by Fastcase, Inc.

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Antitrust; Athletics & Sports; Athletics Compliance (NCAA & more); Authorizations & Regulations

In re National Collegiate Athletic Association Athletic Grant-in-Aid Cap Antitrust Litigation (N.D. Cal. Feb. 3, 2017)

Proposed order granting Plaintiffs’ motion for preliminary approval of a class action settlement in the case In re National Collegiate Athletic Association (NCAA) Grant-in-Aid Cap Antitrust Litigation. The class action suit was filed in 2014 by a former student-athlete at West Virginia University alleging that the NCAA violated antitrust law by capping the value of athletic scholarships below the full cost of attendance. As part of the settlement, the NCAA and 11 NCAA Division I conferences will establish a $208.7 million fund to benefit current and former NCAA Division I basketball and Football Bowl Subdivision student-athletes. The NCAA issued a press release announcing the settlement. 

Antitrust; Athletics Operations; Authorizations & Regulations; Athletics & Sports

Pugh v. National Collegiate Athletic Association (S.D. Ind. Dec. 6, 2016)

A Division I athlete at Weber State University sought to transfer after his grant-in-aid was not renewed for his second year. However, because the NCAA's transfer bylaw required Plaintiff to sit out of competition for a full season, he was ineligible for grants-in-aid contingent on his ability to play two more years of football. Plaintiff filed a class action suit against the NCAA asserting that its bylaws relating to multi-year scholarships and transfer violated the Sherman Act as an unreasonable restraint on trade. Previously, the Court granted the NCAA's partial motion to dismiss the claims as they related to NCAA transfer bylaws. Here, the Court found that there was enough factual overlap between the still-pending scholarship-related claims and the dismissed transfer-related claims to render them inseparable for purposes of entering final judgment. Plaintiff also failed to persuade the Court that there was no just reason for delaying the appeal of the transfer claims. Finally, the Court refused to certify an interlocutory appeal of the transfer claims.

Authorizations & Regulations; Antitrust

In re: National Collegiate Athletic Association Athletic Grant-in-Aid Cap Antitrust Litigation (N.D. Ca., Aug. 5, 2016)

In this consolidated action, Plaintiff student-athletes who played Division I football and basketball between March 5, 2014 and the present filed suit against the National Collegiate Athletic Association (NCAA) and a group of Division I conferences, alleging that Defendants conspired to impose a cap on the amount of grant-in-aid compensation that student-athletes may receive, in violation of federal antitrust law. Defendants moved for judgment on the pleadings, seeking an order dismissing Jenkins v. NCAA in its entirety and dismissing the portion of the consolidated action that seeks injunctive relief. The Court denied the motion, finding that the Ninth Circuit's ruling in O'Bannon v. NCAA—that “offering [student-athletes] cash sums untethered to educational expenses" was not a less restrictive alternative to the NCAA's current rules under the rule of reason—does not foreclose Plaintiffs' challenge to the NCAA's current rules.