NCAA Scholarship Class Action Lawsuits Grouped in California

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A number of class action lawsuits accusing the National Collegiate Athletic Association (NCAA) of colluding with state conferences to keep student athletes from receiving full scholarships have been consolidated in the Northern District of California by the U.S. Judicial Panel on Multidistrict Litigation (JPML).

Many of the plaintiffs in the NCAA scholarship class action lawsuits have alleged that the so-called “free ride” that some commentators argue is payment for their services at top universities is actually inadequate and does not fully cover their costs. In fact, one of the class action lawsuits that will now be heard by California federal judge Claudia Wilken alleged that one college football player had to take out a $5,500 loan to pay the difference. Even a proposed $2,000 increase in grant-in-aid would not cover the difference, the NCAA class action lawsuit alleges.

The NCAA and plaintiffs in a class action lawsuit pending in New Jersey opposed centralization.

In a June 4 ruling, the JPML did not find the NCAA’s arguments convincing that there are “certain differences in the asserted relief sought in the actions on the motion as well as the potential tag-alongs” in the various districts. While some of the NCAA scholarship class action lawsuits seek damages and injunctive relief on plaintiffs’ behalf, others only seek damages for themselves and injunctive relief for current student athletes.

There are enough common questions of fact regarding potential Sherman Antitrust Act violations that the class action lawyers and the defense will benefit that “factual issues and discovery will overlap, particularly as to the definition of the relevant market(s) and the affirmative defenses[,]” the judges wrote in the order. Since Judge Wilken is already overseeing a class action lawsuit against the NCAA that’s seeking compensation for licensed likenesses of student athletes, the JPML ruled that her experience made her a good fit.

Among others, the plaintiffs are represented by class action lawyers from Pearson Simon & Warshaw LLP, Hagens Berman Sobol Shapiro LLP and Winston & Strawn LLP.

The consolidated NCAA Scholarship Class Action Lawsuits are centralized as In re: National Collegiate Athletic Association Athletic Grant-in-Aid Antitrust Litigation, MDL No. 2541, in the U.S. District Court for the Northern District of California.

UPDATE: On Mar. 10, 2016, student athletes asked a California federal judge to intervene in discovery in a class action lawsuit challenging the National Collegiate Athletic Association’s rules that restrict colleges from compensating student athletes beyond their attendance costs.

UPDATE 2: On Mar. 14, 2016, the NCAA told a California federal judge that they have not been withholding documents in the multidistrict litigation over alleged antitrust violations. The NCAA conferences said the student-athlete Class that filed the memorandum made assertions that were “flatly inaccurate.”

UPDATE 3: On Feb. 3, 2017, the National Collegiate Athletic Association and 11 conferences agreed to pay $208.7 million to resolve multidistrict litigation alleging an antitrust conspiracy to cap the scholarships of student athletes.