Penn State $17M COVID Refunds Class Action Settlement

If you were a student at Penn State during the Spring 2020 semester and paid tuition and/or fees for at least one in-person class, you may be eligible to claim a portion of a class action settlement.

The Pennsylvania State University has agreed to pay $17,000,000 to settle a class action lawsuit due to the transition to remote learning during the COVID-19 pandemic.

Who is getting payouts?

To be considered a class member eligible for this settlement:

• You were enrolled at Penn State, including all commonwealth campuses and branch locations, during the Spring 2020 semester
• You paid tuition and/or fees to attend at least one in-person class

How much is the payout per student?

• Medical Withdrawal: Class members who withdrew for medical reasons and received a tuition refund will receive $50.
• General Distribution: The rest of the Net Settlement Fund will be distributed equally among all other eligible class members.

The exact amount each class member will receive depends on the total number of eligible participants and the final Net Settlement Fund amount.

No action needed to receive compensation

If you are an eligible class member, you do not need to take any action to receive your payment. The payment will be sent automatically to your last known permanent postal address on file with Penn State.

Payout methods

• Paper Check: Sent to the last known address.
• Venmo: Option to receive payment electronically.
• PayPal: Option to receive payment electronically.

$17 Million settlement fund

The settlement fund of $17,000,000 will cover various costs associated with the lawsuit:

• Attorneys' Fees and Litigation Expenses: Up to 33.33% of the settlement fund.
• Case Contribution Awards for the Class Representatives: Up to $5,000 each.
• Administrative Expenses: Projected not to exceed $175,000.
• Net Settlement Fund: The remainder will be distributed to eligible class members.

Important dates

• Deadline to Exclude Yourself from the Settlement: January 6, 2025
• Final Approval Hearing: February 18, 2025

When is the Penn State COVID Settlement payout date?

Payments will be distributed within sixty days after the settlement becomes final, following the final approval hearing on February 18, 2025.

Why is there a class action settlement?

The lawsuit was initiated because students alleged that The Pennsylvania State University breached its contract and was unjustly enriched when it moved in-person classes online during the Spring 2020 semester due to the COVID-19 pandemic.

Although Penn State denies any wrongdoing, both parties agreed to settle to avoid prolonged litigation and provide prompt resolution.