Class Action Lawsuits Now Target More Than a Dozen Law Schools

NEWARK, N.J., Feb. 6, 2012 /PRNewswire/ -- A threatened wave of class actions against American law schools became a reality last week after plaintiffs' lawyers sued a dozen more schools over their allegedly misleading use of salary and employment data. But this trend in "consumer protection" is potentially damaging, not only to U.S. law schools, but to higher education in general, said two attorneys for the national law firm LeClairRyan.

"If the goal of these suits is securing transparency on jobs data, then the plaintiffs and their counsel are going about this in entirely the wrong way," said veteran class action defense attorney  Michael Haratz, a Newark-based partner in LeClairRyan's Business Litigation team.  "While there is nothing wrong with working toward clear, consistent and coherent reporting standards, such matters are best addressed via the regulatory process—not by bending higher education to fit a consumerist paradigm more appropriate to a purchaser of traditional consumer goods."

The trend shows every sign of expanding to other institutions across the country, added Haratz. "According to a prominent legal journalist, for example, one of the plaintiffs' lawyers—someone who previously declared 2012 'the year of law school litigation'—hopes to sue up to 25 new schools every few months," he said.

The new complaints come in the wake of highly publicized class actions filed last year against Thomas M. Cooley Law School, New York Law School and Thomas Jefferson School of Law. The latest schools to be targeted reportedly are: Albany Law School, Brooklyn Law School, Hofstra Law School, Widener Law, Florida Coastal School of Law, Chicago-Kent College of Law, DePaul University College of Law, John Marshall Law School, California Western School of Law, Southwestern Law School, University of San Francisco School of Law, and Golden Gate University School of Law.

The complaints allege that U.S. law schools artificially boost enrollments by exaggerating or misrepresenting graduates' employment and salary statistics. "The problem with such litigation is that it runs contrary to the purpose and spirit underlying the class-action lawsuit as a vehicle for consumer redress," said Robert B. Smith a Boston-based LeClair Ryan partner and leader of the firm's Education Industry team. "Why? Because the consumerist paradigm does not fit higher education. Just as law degrees should not come with guarantees of 'gainful employment or your money back,' law students should not regard themselves as consumers entitled to same. After all, they are individuals with varying degrees of talent, motivation, discipline and intelligence. Their futures are their own responsibilities."  

Added Smith: "The purported plaintiffs got what they paid for...an education, a law degree and, in most cases, a license to practice law. Whether or not they are successful in their career choice is entirely up to them. Their schools should not be blamed for any graduate's individual shortcomings or failures, and certainly not for a dismal economy."

Haratz further noted that, as originally envisioned, the United States class action mechanism was intended to enhance judicial efficiency on claims involving large numbers of people, granting access to compensation for individuals whose claims would not be sufficiently profitable to persuade a lawyer to take their case.  "This ostensibly does not apply to the individuals purported to be class members in these actions, as they are alleged to have spent upwards of $100,000 or more on their law school tuition," he said.

More than 50 recent law school graduates have agreed to serve as purported class representatives, Haratz said. "These suits claim to be about transparency, but of course they also seek significant damages, including full tuition refunds for the plaintiffs," he noted.  "At the same time, however, most, if not all, of the named plaintiffs have acknowledged that they received a high quality legal education or that they have no grievance with the quality of their legal education."

As they contemplate defensive strategies, law schools need to consider many factors, some of which are outlined in a LeClairRyan client alert:  http://www.leclairryan.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=692

About LeClairRyan

As a trusted advisor, LeClairRyan provides business counsel and client representation in corporate law and litigation. In this role, the firm applies its knowledge, insight and skill to help clients achieve their business objectives while managing and minimizing their legal risks, difficulties and expenses.  With offices in California, Connecticut, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C., the firm has approximately 350 attorneys representing a wide variety of clients throughout the nation.  For more information about LeClairRyan, visit www.leclairryan.com.

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SOURCE LeClairRyan