Students, parents sue admissions scandal defendants for fraud

Private litigation has already emerged from this week's college admissions scandal as students and parents claim the alleged cheating and bribery scheme defrauded and hurt other college applicants.

The Department of Justice charged 50 defendants Tuesday -- including private college counselors, university athletic coaches and parents -- in connection with an alleged admissions conspiracy that included bribing coaches to recruit students as athletes and cheating on admissions exams. Alleged ringleader William Singer pled guilty to charges of racketeering, money laundering and conspiracy, and several universities cut ties with staff accused of accepting bribes.

Eight universities were named by the Department of Justice as being affected by the scheme: Georgetown University, Stanford University, UCLA, University of San Diego, USC, University of Texas at Austin, Wake Forest University and Yale University.

Two Stanford students, Erica Olsen and Kalea Woods, filed a class action Wednesday claiming their degrees have been devalued as a result of the scandal and that they would not have applied to the universities in question had they known about the bribery. Olsen has since withdrawn, and seven other plaintiffs joined Thursday, including students rejected from the universities and their parents. The lawsuit names Singer and the eight universities, alleging negligence and unfair competition.

"At the time she applied, Woods ... was never informed that the process of admission at USC was an unfair, rigged process, in which parents would buy their way into the university through bribery and dishonest schemes," according to the complaint. "Had she known that the system at USC was warped and rigged by fraud, she would not have spent the money to apply to the school."

The suit seeks to define the class as all individuals who applied and were rejected from one or more of the eight universities between 2012 and 2018. The plaintiffs seek punitive and compensatory damages.

One plaintiff, Tulane University student Lauren Fidelak, claims she had an emotional breakdown and was hospitalized as a result of rejections by USC and UCLA. Olsen v. Singer, 19-cv-01351 (N.D. Cal., filed March 13, 2019).

"We believe the lawsuit filed by the students against Stanford is without merit," Stanford said in a statement, adding that it stands by the integrity of its admissions process.

A UCLA spokesperson said UCLA is aware of the lawsuit but does not comment on pending litigation. University of San Diego said in a statement it does not comment on pending litigation but is conducting an investigation into the allegations. A request for comment from USC went unanswered.

The plaintiffs are represented by John F. Medler Jr. of The Medler Law Firm APC and attorneys from Zimmerman Reed LLP.

Another class action filed Wednesday by Jennifer Kay Toy alleges Singer and the defendants charged by the Justice Department defrauded other parents and student applicants and inflicted emotional distress. Toy, whose son Joshua was rejected from several of the universities in question, seeks $500 billion in damages for an estimated 1 million class members.

"Plaintiffs simply wanted a fair chance for themselves or their children to go to a good college and that opportunity for a fair chance was stolen by the actions of defendants through the [despicable] and illegal actions of defendants who feel that because they are wealthy [they] are allowed to lie, cheat and steal from others," according to the complaint. Toy v. Loughlin, CGC-19-574501 (S.F. Super. Ct., filed March 13, 2019).

Toy is represented by Los Angeles attorney Daniel J.Y. King.

"These complaints, charitably stated, are a long shot," said plaintiff's attorney Niall McCarthy, a principal at Cotchett Pitre & McCarthy LLP not involved in the matter.

McCarthy said the claims had major causation issues, as there's no proof the universities knew of the fraud, and it will be "essentially impossible" to show certain class members would've been admitted if not for the fraud.

"In essence, you are claiming that since a few students cheated to get into Stanford, every student who applied to Stanford and was declined over a multi-year period should get their application fee refunded," he said.