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Carroll, et al. v. Walden University, LLC, et al.,

Civil Action No. 1:22-cv-00051-JRR

THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY.

TO: Black and Female students who were enrolled in the Doctor of Business Administration program at Walden University from August 1, 2008 to January 31, 2018. 

THIS IS A COURT-ORDERED NOTICE.
THIS IS NOT A SOLICITATION FROM A LAWYER.

This Notice of Settlement and Fairness Hearing is to inform you of a proposed Settlement that has been reached in a class action lawsuit brought by four Black and female students (“Plaintiffs”) who enrolled in the Doctor of Business Administration program (“DBA”) at Walden University (“Walden University,” “Walden,” or “Defendants”) from August 1, 2008 to January 31, 2018 on behalf of a class of similarly situated individuals that meet certain criteria (“Class Member(s),” as explained further in Question 8 below). The proposed settlement, if granted final approval by the Court (the “Settlement”), will result in the creation of a fund of $28,500,000 (the “Settlement Fund”) to pay Plaintiff Class Members’ claims, the Plaintiffs’’ attorneys (“Class Counsel”), and certain administrative costs. If you are a Class Member, you are eligible to receive a share of the Settlement Fund. The proposed Settlement also requires Walden University to adopt certain policy changes.


IF THIS NOTICE IS ADDRESSED TO YOU, YOU HAVE BEEN IDENTIFIED AS A POTENTIAL CLASS MEMBER. As a Class Member, you have the right to know about this Settlement and how this Settlement may generally affect your legal rights. This notice describes the lawsuit, the Settlement, the legal rights of all Class Members, and the applicable deadlines. Your options are explained in this notice and summarized in the following chart:

Your Legal Rights and Options in The Settlement

Claim Form

INSTRUCTIONS

READ ALL INSTRUCTIONS CAREFULLY BEFORE FILLING OUT THE CLAIM FORM

  1. Fill in all blank spaces in the claim form with clearly printed or typed information.
  2. You must sign and date the claim form.
  3. By signing your claim form, you are declaring under penalty of perjury that the information provided is true and correct. Please understand that you could be subject to criminal penalties for submitting any false information on your form.
  4. If you have any questions about this form, contact the Claims Administrator at claims@ssiclaims.com or (833) 419-0995 . There is no fee for any service or assistance provided by the Claims Administrator. DO NOT CONTACT THE COURT OR THE CLERK OF THE COURT.
  5. Complete your claim form at www.walden-dba-settlement.com, or mail your signed and completed claim form using the enclosed pre-addressed, stamped envelope, by [DATE]. If you do not have the pre-addressed, stamped envelope, you may mail your signed and completed claim form to: Carroll v. Walden University, LLC Claims Administrator, c/o Settlement Services, Inc., PO Box 10269, Tallahassee, FL, 32302-2269 to:  YOUR CLAIM FORM MUST BE SUBMITTED ONLINE OR POSTMARKED ON OR BEFORE [DATE]. LATE CLAIM FORMS WILL NOT BE CONSIDERED.
  6. If your email address or mailing address changes at any time, mail your new address to the Claims Administrator at the address above or update it at www.walden-dba-settlement.com. Any change of address must be in writing and include your signature.
  7. You do not need an attorney to help you submit a claim form. If you do wish to consult an attorney, however, you may do so at your own expense.
  8. Please keep a copy of the completed form for your records.
  9. The Claim Form that was sent to you contains the number of capstone credits that you took.  The online version of the Claim Form does not show your capstone credits.  If you believe that you took more or less capstone credits than indicated on the materials provided to you, you may submit documents to support that claim. Any documents you submit to show that you took a different number of capstone credits at Walden than indicated on the materials provided to you will be considered in determining the amount of any monetary payment you are eligible to receive. Examples of such documents include, but are not limited to:
    1. Transcripts from Walden;
    2. Signed Walden enrollment agreements;
    3. Walden certificate of completion;
    4. Cancelled checks or other documents showing payment to Walden; or
    5. Emails of letters from or to Walden.

If you do not dispute the number capstone credits that you took, you do not need to submit any documents other than a completed claim form.


LATE CLAIM FORMS WILL NOT BE CONSIDERED

Frequently Asked Questions

Basic Information

Plaintiffs and Defendants are asking the Court to allow or “certify” for settlement a class in a class action lawsuit that affects you. Walden’s records show that you enrolled in its DBA program between August 1, 2008, and January 31, 2018. This notice explains that the Plaintiffs and Defendants have presented a settlement of the lawsuit to the Court, asked the Court to approve it, and received preliminary approval. The Honorable Julie R. Rubin of the United States District Court for the District of Maryland is overseeing this class action. The lawsuit is known as Carroll, et al. v. Walden University, LLC, et al., Civil Action No. 1:22-cv-00051-JRR.

This lawsuit alleges that Walden University knowingly misrepresented the true cost of the DBA program by disclosing the minimum number of capstone credits required to complete the program and obtain a degree, when students often completed more than the minimum number of disclosed capstone credits before completing the DBA program. The lawsuit further alleges that Walden targeted Black and female prospective students for enrollment, and that Walden’s practice of targeting nontraditional students had a disproportionate adverse impact on Black and female students.

In a class action lawsuit, one or more people called “Class Representatives” sue on behalf of other people who have similar claims. The people who have similar claims are a “class” or “class members.” The DBA students who sued on behalf of the class are also called the Plaintiffs. The entities they sued are called the Defendants. One court resolves the issues for everyone in the class—except for those people who choose to opt out of the class. The class action approach avoids the need for numerous people to file similar individual lawsuits, and it allows the court system to resolve these claims in an efficient and economical way.

THE CLAIMS IN THIS LAWSUIT

This lawsuit alleges that Walden University knowingly misrepresented the true cost of the DBA program by disclosing the minimum number of capstone credits required to complete the program and obtain a degree, when students often completed more than the minimum number of disclosed capstone credits before completing the DBA program. The lawsuit further alleges that Walden targeted Black and female prospective students for enrollment, and that Walden’s practice of targeting nontraditional students had a disproportionate adverse impact on Black and female students. Plaintiffs claim that Walden University’s practices violated Title VI of the Civil Rights Act of 1964 (“Title VI”), 42 U.S.C. § 2000d et seq., and the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. § 1691 et seq. Title VI and ECOA are federal anti-discrimination laws.

Defendants deny that they violated federal anti-discrimination laws by discriminating on the basis of race or gender, intentionally or otherwise. Defendants contend that they directed advertisements to the student body they sought to educate, and Walden University’s student body is predominantly Black and female; and that they did not intentionally discriminate against female students because of their gender or Black students because of their race. Defendants also deny that they made any false or misleading statements about the number of capstone credits necessary to complete the DBA program and obtain a degree, because Defendants accurately represented the minimum number of capstone credits required to obtain a DBA degree.

The Plaintiffs filed this case seeking money that students paid to Defendants for capstone credits in excess of the minimum requirements disclosed by Walden for the DBA program. Plaintiffs also seek injunctive relief, which means changes to Defendants’ policies and practices in its DBA program. The lawsuit also asks for declaratory relief that Defendants violated Title VI and ECOA.

*Note  –  Some Class Members (approximately 55) received cash payments from the settlement in Thornhill v. Walden University, No. 2:16-cv-00962 (S.D. Ohio). Payments here will be reduced by the amount of any cash payment pursuant to Thornhill.

The Court denied Defendants’ motion to dismiss the Plaintiffs’ claims, allowing Plaintiffs to move forward on all their class claims and proceed to the discovery phase of litigation in which the parties exchange information. The Court’s denial of the motion to dismiss is not a determination that Defendants violated any law. 

Were this case to go to trial, all of Plaintiffs’ claims would be tried. However, even if the Plaintiffs won at trial, Defendants could file an appeal. Additionally, if this case were to go to trial and Defendants were to win at trial, Plaintiffs and class members would not be entitled to any relief, such as a financial payment.

WHO IS IN THE CLASS?

If a Class Notice has been sent to you, Walden University’s records indicate that you may be part of the class. If you fit within the class definition below and submit a claim form, you will be included as part of the class and receive a payment unless you ask to opt out. If you do not opt out and do not submit a claim form, you will be a member of the class and bound by the Court’s decisions in this case but will NOT receive a payment. You do not have to have participated in this lawsuit in any way up to this point in order to be a Class Member. Opting out is described in the “Your Rights and Options” section below.

The Court’s class definition includes person who fall into at least one of the following categories: 

(a) all Black students who enrolled in and/or began classes in for Walden University’s DBA program between August 1, 2008 and January 31, 2018, and were charged for and successfully completed Excess Capstone Credits, defined as more capstone-level credits than the number of DBA capstone-level credits that Walden stated were the minimum required at the time they enrolled; 

(b) all Black students who enrolled in and/or began classes in Walden’s DBA program between August 1, 2008 and January 31, 2018, and were charged for and successfully completed Excess Capstone Credits, and applied for and/or received student loans or payment plans to pay for some or all of their Walden education; and, 

(c) all female students who enrolled in and/or began classes in Walden’s DBA program between August 1, 2008 and January 31, 2018, and were charged for and successfully completed more than the number of DBA capstone-level credits that Walden stated were the minimum required at the time they enrolled, and applied for and/or received student loans or payment plans to pay for some or all of their Walden education. 

If you fit this class definition, you are a Class Member in this lawsuit, even if you did not complete the DBA program at Walden University.

The Class Representatives are Aljanal Carroll, Claudia Provost Charles, Tiffany Fair, and Tareion Fluker. The Court has preliminarily determined that these former Walden DBA students fairly and adequately represent the interests of the class.

Summary of Proposed Settlement Agreement

Under the proposed settlement, Walden will pay $28.5 million to settle the class claims.

$21,175,000 of the Settlement Fund will be designated for payments to Class Members. The individual allocation to each Class Member will be calculated by the “Claims Administrator,” who has had no prior role in this litigation. The Claims Administrator will rely on information provided by Defendants to calculate the allocation. The Claims Administrator will calculate the individual allocation to each Class Member who submits a timely, valid claim form. These funds will be distributed pro rata based on how many DBA capstone credits each Class Member completed above the number that Walden stated was the minimum at the time they enrolled. For example, if a Class Member completed 44 excess capstone credits and submits a valid claim form, and all Class Members who submit valid claim forms collectively completed 90,000 excess capstone credits, then that class member will receive 44/90,000 of the compensation pool, or approximately $10,000.

[Note — Some Class Members (approximately 55) received cash payments from the settlement in Thornhill v. Walden University, No. 2:16-cv-00962 (S.D. Ohio). Payments here will be reduced by the amount of any cash payment pursuant to Thornhill].

$100,000 of the Settlement Fund will be designated for payments of $25,000 to each of the four Class Representatives in recognition of their significant efforts in bringing and prosecuting this action, including involvement in litigation strategy, provision of information to Class Counsel, and advancing the interests of the class.

$7,125,000, or 25% of the Settlement Fund, will be designated for payment to Plaintiffs’ Counsel for attorneys’ fees and to reimburse costs paid for by Plaintiffs’ Counsel. Plaintiffs’ Counsel have been working on this case for over three years. During the time that this case has been pending, Plaintiffs have not paid Class Counsel for their work on this case or for the significant expenses that they have incurred in investigating and prosecuting this case. In this type of litigation, it is customary for Plaintiffs’ Counsel to be awarded a percentage of the Settlement Fund as their attorneys’ fees. The Court will decide whether to approve the amount of attorneys’ fees that Plaintiffs’ Counsel have requested.

$100,000 of the Settlement Fund will be designated to cover administrative costs related to administering the Settlement. This includes funds to pay for the Claims Administrator, who will distribute and process claim forms, process payments to Class Members, calculate allocations to Class Members, and notify Class Members about this Settlement.

On its website and in enrollment agreements, Walden will disclose the median time to complete the DBA program and median cost to complete the DBA program based on historic data from the preceding three years of graduates. The enrollment agreements will include additional disclosures that completing the DBA program may require up to 8 years of enrollment. In addition, Walden will not reinstitute the “University Research Reviewer” role on DBA students’ dissertation committees. Walden will maintain these changes for a minimum of four years.

Your Rights and Options

If you wish to receive a payment from this settlement, you must properly complete a Claim Form.  A Claim Form and instructions for completing it will be distributed to you at a later date if the Court grants final approval of the Settlement.  If you do nothing, you will remain in the lawsuit but will not receive a share of the Settlement Fund.

You are not required to retain your own attorney to remain in this lawsuit or to file a Claim Form. You will not be required to pay any money for the services of Class Counsel or their representatives and assistants.

If you remain in the lawsuit, and if the Court grants final approval of the proposed Settlement, then you will be bound by all the terms of the Settlement. This means that you will not be able to bring a separate lawsuit or other legal proceeding against Defendants related to the allegations and claims described above that are included in this lawsuit. Nor will you be able to challenge the Settlement Agreement after it has been finally approved by the Court. You will be legally bound by all of the orders the Court issues and the judgments the judge and jury make in this class action.

If you do not wish to remain a part of this lawsuit, then you may exclude yourself from the lawsuit by submitting a written opt-out letter requesting exclusion to the Claims Administrator at Carroll v. Walden University, LLC Claims Administrator, c/o Settlement Services, Inc., PO Box 10269, Tallahassee, FL, 32302-2269, or at claims@ssiclaims.com, on or before June 19, 2024. If you exclude yourself from this lawsuit, you will not be bound by the terms of the Settlement, and you will be free to bring your own lawsuit or other legal proceedings against the Defendants. 

However, if you exclude yourself from the lawsuit, you will have no right to receive any money from the Settlement Fund. Further, you must understand that if you exclude yourself from this lawsuit and then bring your own separate lawsuit or other legal proceedings against the Defendants, you may lose your case and receive nothing; even if you win a separate case, you may have to wait several years to obtain any money, you may have to settle for less money than you would receive under the Settlement in this lawsuit, and you may have to retain and pay for your own attorney. If you bring a separate claim, the Defendants may be able to assert defenses such as the statute of limitations. The statute of limitations for the claims brought in this lawsuit ordinarily range from two to five years.

To exclude yourself from this lawsuit, you must submit to the Claims Administrator a letter that is signed by you, dated, and that includes your full name, address, social security number, telephone number, and the following language:

I wish to exclude myself from the plaintiff class in the case of Carroll et al. v. Walden University, LLC et al. No. 1:22-cv-00051-JRR.

I understand that, if the Court approves the proposed Settlement, members of the plaintiff class who remain in the lawsuit may be eligible to receive a monetary payment from the Settlement Fund. In choosing to exclude myself from the plaintiff class in this case, I understand that I will not be eligible to receive any monetary payment under the Settlement. I also understand if I exclude myself and bring a separate claim, I may have to overcome defenses such as the statute of limitations. 

In addition to the required language set forth above, you may include reasons why you do not wish to participate in this lawsuit in your written request for exclusion. 

Your written request for exclusion must be received by the Claims Administrator via email (claims@ssiclaims.com) or by mail at Carroll v. Walden University, LLC Claims Administrator, c/o Settlement Services, Inc., PO Box 10269, Tallahassee, FL, 32302-2269 on or before June 19, 2024. If the Claims Administrator has not received your written request for exclusion, including the language set forth above, by June 19, 2024, then you will be deemed to have given up your right to exclude yourself from this lawsuit. 

If you exclude yourself from the lawsuit but then decide that you wish to remain in the lawsuit, you may rescind your exclusion on or before July 3, 2024. To do so, you must submit to the Claims Administrator a letter that is signed by you, dated, and that includes your full name, address, social security number, telephone number, and a statement that you wish to rescind the letter of exclusion that you previously submitted. Your recission letter can be submitted via email or by mail using the addresses provided above.

To effectively implement the Settlement, Walden must provide the following information covered by the Family Educational Rights and Privacy Act for each Class member:  social security number, number of capstone credits completed, and number of capstone credits required by Walden’s Course Catalog in effect as of the Class Member’s DBA program start date.  Walden has been ordered by the Court to provide this information to Plaintiffs’ Class Counsel and the Claims Administrator unless you object within thirty (30) days.  If you object to Walden providing this information, it will be treated the same as opting out of the Settlement and you will not be part of this lawsuit or receive any money from the Settlement Fund.

To object to the disclosure of this information, you must send a letter stating that you object to Walden’s attorney at:

Caitlin E. Dahl
Latham & Watkins LLP
330 North Wabash Ave.
Suite 2800
Chicago, IL  60611

Your letter must be sent by June 8, 2024.

Hearing on Proposed Settlement Agreement

The Court, which has made a preliminary finding that the proposed Settlement is fair and just, has scheduled a hearing (the “Fairness Hearing”) to determine whether it will grant final approval of the Settlement. The Court will hold this hearing at 11:00 am on July 23, 2024 at the United States District Court for the District of Maryland, located at the Edward A. Garmatz United States District Courthouse, 101 West Lombard Street Baltimore, MD 21201, in Courtroom # 3A.

It is not necessary for you to appear at the hearing or to file anything with the Court before the hearing. If you fit within the Court’s definition of the class, then your interests will be adequately represented at the hearing by the named Plaintiffs and Plaintiffs’ Counsel. 

However, subject to the following requirements, you may submit written comments on the proposed Settlement, and you may speak to the Court, either personally or through your own attorney, at the hearing on July 23, 2024.

If you wish to object to the proposed Settlement, you must send a letter that includes the following:

  • Your name, address, and telephone number;
  • The name and number of the case (Carroll, et al. v. Walden University, LLC, et al., No. 1:22-cv-00051-JRR);
  • The basis for your objection(s);
  • Whether you wish to be heard in Court at the Fairness Hearing;
  • A list of any witnesses you may call to testify at the Fairness Hearing;
  • Copies of any document you intend to present to the Court at the Fairness Hearing and all other documents in support of your objections;
  • Your signature

You may not object to the proposed Settlement if you opt out of the class.

Your objection, along with any supporting material you wish to submit, must be mailed and postmarked no later than July 3, 2024, to all the following three addresses:

 

CourtPlaintiffs’ CounselDefense Counsel
United States District Court
for the District of Maryland,
Edward A. Garmatz
United States District Courthouse,
101 West Lombard Street
Baltimore, MD  21201

Tara Ramchandani
Relman Colfax PLLC
1225 19th St., NW #600
Washington, DC 20036

Caitlin E. Dahl
Latham & Watkins LLP
330 North Wabash Ave. 
Suite 2800 
Chicago, IL 60611

 

If you wish to request permission to speak at the hearing, you must file with the Court a “Notice of Intent to Appear.” Your notice must include the following: 

  • Your name, address, and telephone number; 
  • The name of the case (Carroll et al. v. Walden University, LLC et al., No. 1:22-cv-00051-JRR); 
  • The name, address, and telephone number of any attorney(s) who will be appearing on your behalf at the Fairness Hearing; and 
  • Your signature. 

You must mail your Notice of Intent to Appear, postmarked no later than July 3, 2024 to the Court, Plaintiffs’ Counsel, and Defense Counsel at each of the three addresses listed above. 

Your appearance at the hearing, as well as that of your attorney, will be at your own expense.

CLASS COUNSEL

The Court decided that attorneys from the law firm Relman Colfax PLLC and the National Student Legal Defense Network are qualified to represent you and all Class Members and appointed them to be “Class Counsel.” Contact information for Class Counsel is as follows:

Relman Colfax PLLC
Attn: Walden Team
1225 19th Street, NW
Suite 600
Washington, DC 20036
Tel. (202) 728-1888
Fax. (202) 728-0848
http://relmanlaw.com

National Student Legal Defense Network
Attn: Walden Team
1701 Rhode Island Ave., NW
Washington, DC 20036
Tel. (202) 734-7495
https://defendstudents.org

You do not need to hire your own lawyer because Class Counsel are working on your behalf. But, if you want your own lawyer, you will have to make your own arrangements for the payment of that lawyer. For example, you can ask him or her to appear at the Fairness Hearing for you if you want someone other than Class Counsel to speak for you.

QUESTIONS

This Notice summarizes the proposed Settlement. The Settlement Agreement and Plaintiffs’ Motion for Preliminary Approval contain more details about the Settlement, the distribution of the Settlement Fund, and the changes to the Defendants’ policies. 

Any inquiries by Class Members concerning this Notice or the class action should be directed to the Claims Administrator at (833) 419-0995. You can also direct questions, by phone or in writing, to Plaintiffs’ Counsel Tara Ramchandani, who can be reached at (202) 728-1888, tramchandani@relmanlaw.com, or at Relman Colfax PLLC, 1225 19th Street, NW, Suite 600, Washington, DC 20036.

Change of Address

Note: If your address has changed, please let the Settlement Administrator know by completing the Change of Address Form.

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DOCUMENTS RELATED TO THE SETTLEMENT

Click on the links below to download documents related to the Settlement.