U.S. District Judge Joshua D. Wolson of the Eastern District of Pennsylvania has granted preliminary approval of a $2.2 million settlement resolving a class action lawsuit on behalf of thousands of Drexel University students alleging breach of contract and unjust enrichment during the COVID-19 pandemic. Lynch Carpenter partner Nicholas Colella led this litigation and was instrumental in reaching this settlement.
The Class Action Lawsuit
In spring 2020, Drexel University—like many institutions across the country—suspended in-person instruction and shifted classes online in response to the COVID-19 pandemic. Drexel, however, did not issue prorated refunds to students for tuition and fees paid for services they could no longer access.
A class action was filed against Drexel University in 2023, bringing claims for breach of contract and unjust enrichment. Plaintiff and the class members argued that by refusing to provide prorated refunds, Drexel violated its contractual obligations and unlawfully retained funds for services it failed to deliver.
The Settlement
Under the proposed settlement, Drexel has agreed to contribute $2.2 million to a settlement fund available for distribution to an estimated 16,576 class members. The settlement class consists of all tuition- and fee-paying students enrolled at Drexel during the spring 2020 term, with limited exclusions.
The settlement will distribute the net settlement fund (after administrative costs, notice expenses, and court-approved attorney’s fees and case contribution awards) among all class members on a pro-rata basis.
The court appointed RG/2 Claims Administration LLC as the Settlement Administrator.
Final Approval Hearing
Judge Wolson has scheduled the Final Approval Hearing for August 5, 2026, at 10:00 a.m. at the U.S. Courthouse in Philadelphia (601 Market Street, Courtroom 12B).
What Happens Next
Between now and the final approval hearing in August 2026, class members will receive notice of the Settlement and their rights related to the same.
For those eligible to receive settlement benefits, funds will be distributed—via check, Venmo, or PayPal—once the settlement becomes final and after all administrative costs and court-approved fees are deducted from the settlement fund.
More Information
More information can be obtained through the Settlement Website: https://www.drexelcovidsettlement.com/
Case Citation
Deller v. Drexel University, Case No. 2:23-cv-03746-JDW (E.D. Pa.)