What the Lawsuit Alleged
Walden University is a for-profit, online university based in Minneapolis. A class action, Carroll v. Walden University, filed in January 2022 in federal court in Maryland, alleged the school engaged in what plaintiffs called reverse redlining, deliberately targeting Black and female prospective students with marketing for its Doctor of Business Administration program while hiding the program true cost.
The complaint alleged that enrollment advisers told prospective students the DBA program required about 60 credits, when students actually completed an average of 94 credits, adding as much as 34,300 dollars in additional costs per graduate. Plaintiffs alleged this stemmed from a capstone research and writing phase that dragged on, sometimes due to vague faculty feedback that could restart the approval process, keeping students enrolled and paying for additional credits. Notably, in 2016, 41 percent of students across Walden doctoral programs were Black, roughly seven times the national average for Black doctoral enrollment, and nearly 77 percent were female.
The Legal Claims and Walden Response
Plaintiffs brought claims under Title VI of the Civil Rights Act of 1964 and the Equal Credit Opportunity Act, arguing that because federal student loans funded much of the program, the alleged discriminatory targeting in recruitment amounted to discrimination connected to a credit transaction. Walden sought to have the case dismissed, but the court denied that request and allowed the case to proceed.
Walden denied the allegations. In agreeing to settle, the university stated it did so in pursuit of the best interests of all parties involved, language consistent with the standard practice of settling without admitting wrongdoing.
The Settlement and Payouts
In March 2024, Walden agreed to a 28.5 million dollar settlement, covering roughly 2,300 Black or female students who enrolled in the DBA program between August 2008 and January 2018 and paid for excess capstone credits. The court granted final approval on October 17, 2024. Of the total settlement, 21.175 million dollars was distributed to class members on a pro rata basis according to how many excess capstone credits each student completed.
Beyond the money, Walden agreed to make new disclosures on its website about the median time and cost to complete the DBA program, and eliminated a specific dissertation committee role, the University Research Reviewer, that plaintiffs said contributed to delays, committing to maintain that change for at least four years. Checks were mailed to class members on April 10, 2025, with digital payments following on April 16, 2025, and the claim deadline of January 15, 2025 has since passed.
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Walden University Lawsuit: The $28.5 Million Doctoral Program Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What did the Walden University lawsuit allege?
That Walden targeted Black and female prospective students with deceptive marketing for its Doctor of Business Administration program, understating the true number of credits and cost required to graduate, in violation of federal civil rights and credit discrimination laws.
How much did Walden pay?
28.5 million dollars, with 21.175 million dollars distributed to roughly 2,300 eligible Black or female students who enrolled in the DBA program between August 2008 and January 2018 and paid for excess capstone credits.
Can I still file a claim?
No. The claim deadline was January 15, 2025, and checks were mailed to eligible class members on April 10, 2025, with digital payments following shortly after. That window has closed.
Did Walden admit wrongdoing?
No. Walden denied the allegations throughout the litigation and agreed to settle without admitting wrongdoing, which is standard practice in class action settlements.
Did Walden make any changes beyond the payment?
Yes. It agreed to disclose median completion time and cost for the DBA program on its website and eliminated a dissertation committee role plaintiffs said contributed to delays, committing to keep that change for at least four years.