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:

UPDATE: the Court granted final approval to the proposed Settlement on October 17, 2024. Claim Forms were distributed by mail, email, and text message to all known Class Members on October 22, 2024. You must submit a completed Claim Form if you wish to receive a payment from this Settlement. Claim Forms must be submitted online or postmarked on or before January 15, 2025. Late Claim Forms will not be considered. If you have any questions, or did not receive a Claim Form but think you may be covered by the Settlement, you may contact the Claims Administrator at claims@ssiclaims.com or (833) 419-0995. Claim Forms can be submitted online here or by mail to Carroll v. Walden University, LLC Claims Administrator, c/o Settlement Services, Inc., PO Box 2715, Portland, OR, 97208-2715.

Your Legal Rights and Options in The Settlement

PARTICIPATE IN THE SETTLEMENT	To participate in the Settlement, you must submit a “Claim Form.” Submitting a Claim Form is the only way that you can receive a share of the Settlement Fund. A Claim Form will be sent to you after the Court grants final approval of the Settlement. You are not required to retain your own attorney to file a Claim Form, and you will not be required to pay any money for the services of Plaintiffs’ Counsel.
OPT OUT OF THE SETTLEMENT	The Settlement has been approved by the Court. It is now too late to remove yourself from the Class. If you wish to receive a payment from this settlement, you must submit a claim form by January 15, 2025.
OBJECT	The Settlement has been approved by the Court. It is now too late to object to the Settlement. If you wish to receive a payment from this settlement, you must submit a claim form by January 15, 2025.
DO NOTHING	If you are a Class Member and do not submit a Claim Form, you will not be eligible to receive a share of the Settlement Fund. You will, however, remain a Class Member, which means that you will be bound by any judgments or orders entered by the Court in this lawsuit.

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.

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 complete claim form before the deadline, you will be included as part of the class and receive a payment. If you fit within the class definition below but do not submit a complete claim form before the deadline, you will be included as part of the class and bound by the Court’s decisions in this case but will NOT receive a payment.

The Court’s class definition includes individuals 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.

The Settlement Agreement and the Court’s orders provide that certain groups of people are not Class Members, even if they fall into one or more of the above categories. People who are not Class Members include:

(1) The Judges presiding over the case and members of their families,

(2) The Defendants, Defendants’ subsidiaries, Defendants’ parent companies, any entity in which Defendants or their parent companies have a controlling interest, and their current and former officers, directors, and employees (this includes all Walden employees and former employees),

(3) Individuals who timely requested for exclusion from the class,

(4) The legal representatives, successors, or assigns of any such excluded persons, and

(5) People who participated in a separate settlement known as Thornhill and did not waive the confidentiality provisions of that settlement as required to participate here.

If you fit the class definition and are not part of any of the groups excluded from the class, you are a Class Member in this lawsuit, even if you did not complete the DBA program at Walden University.

No. Only Class Members are covered by the release of claims in the settlement agreement.

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.

The Settlement has been approved by the Court. It is now too late to remove yourself from the Class. If you wish to receive a payment from this settlement, you must submit a claim form by January 15, 2025.

The Settlement has been approved by the Court. It is now too late to opt-out of having your information used. If you wish to receive a payment from this settlement, you must submit a claim form by January 15, 2025.

Hearing on Proposed Settlement Agreement

The Court granted final approval to the settlement on October 17th and Claim Forms were sent to the Class on October 22nd. The deadline to file a Claim Form is January 15, 2025. Late Claims will not be accepted. If you file a Claim Form, please make sure to let us know if you have any change of address or contact information.

The Settlement has been approved by the Court. It is now too late to object to the Settlement. If you wish to receive a payment from this settlement, you must submit a claim form by January 15, 2025.

The fairness hearing happened on October 17, 2024.

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 ABOUT THE CLAIM FORM

The Claim Form was sent to you because you have a right to file a claim in a settlement that has been reached in a class action lawsuit brought by four Black and female students (called “Plaintiffs”) who enrolled in the Doctor of Business Administration program at Walden University from August 1, 2008 to January 31, 2018 on behalf of a class of similarly situated individuals that meet certain criteria. The settlement resulted in the creation of a “Settlement Fund” to pay Plaintiff Class Members’ claims, the Plaintiffs’ attorneys, and certain administrative costs. You may be eligible to receive a share of the Settlement Fund if you file a valid Claim Form by the January 15, 2025, deadline.

If you did not receive a Claim Form but think you may be covered by the Settlement, please contact the Claims Administrator at claims@ssiclaims.com or (833) 419-0995.

No. If you believe you are not a member of the class, there is no requirement that you complete the claim form. If you are unsure about whether you are a member of the class, you may complete and submit the claim form, and the Claims Administrator will determine whether you are included in the class.

A “capstone credit” for the purposes of this settlement is a credit earned for completion of a 9000-level doctoral study course as defined by Walden’s Course Catalog in effect as of your DBA program start date. To count for the purposes of this settlement, capstone credits must have been earned on or before the date of the Court’s preliminary approval of this settlement on April 17, 2024.

Paper Claim Form

If you believe that the number of capstone credits that Walden’s records has for you is incorrect, then you should answer “no” to the question that asks “is ___ the correct number of capstone credits you completed in connection with Walden University’s Doctor of Business Administration program between [the date you began the program] and [the date you ended the program or April 17, 2024, whichever is earlier]?”
For the question directly below that – the one that asks for the correct number of capstone credits, you should fill in the correct number of capstone credits that you completed during those dates.
You should include documentation to support your assertion that Walden’s records are incorrect and that the number of capstone credits that you believe you completed during that time frame are correct and mail it with your Claim Form.

Online Claim Form

If you believe that the number of capstone credits that Walden’s records has for you is incorrect, then you should answer “no” to the question that asks “is the number of capstone credits you completed in connection with Walden University’s Doctor of Business Administration Program between the date you began the program and April 17, 2024correct on the Claim Form you received via mail or email?”
For the question directly below that – the one that asks for the correct number of capstone credits, you should fill in the correct number of capstone credits that you completed during those dates.
You should include documentation to support your assertion that Walden’s records are incorrect and that the number of capstone credits that you believe you completed during that time frame are correct. To submit this documentation, click on the link that says “Documentation Here.” That link will take you to our email, claims@ssiclaims.com where you may respond to us with PDFs of your documents.

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:

Transcripts from Walden;
Signed Walden enrollment agreements;
Walden certificate of completion;
Cancelled checks or other documents showing payment to Walden; or
Emails or letters from or to Walden.

If you are filing an online Claim Form, once you answer “no” to the question of whether the number of capstone credits on the claim form is correct, a link will appear that directs you to our email address, to which you may send PDFs of the relevant documentation to go along with your Claim Form. If you are not able to access that link you may email us your materials at claims@ssiclaims.com. If you are mailing a Claim Form, you may simply enclose copies of the documents with your Claim Form. If you email a Claim Form to us, please also include PDFs of your documents along with the email you send. Remember, it is not required that you send any documents unless you wish to establish that you took a different number of capstone credits than what is listed on your Claim Form.

RECEIVING AN AWARD

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 in excess of the number that Walden stated was the minimum required 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*.

* A small number of Class Members 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.

In order to be eligible for an award, Class Members must file a valid, timely Claim Form by no later than January 15, 2025. Checks will be mailed at one time after all Claim Forms have been evaluated and processed.

Taxes withheld, if any, will be clearly marked on any check stub you receive if you are eligible for an award.

Please call the Settlement Administrator to discuss this at (833) 419-0995.

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.

DOCUMENTS RELATED TO THE SETTLEMENT

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