USC $10M Tuition and Fees COVID-19 Class Action Settlement

Students who paid or were obligated to pay tuition, fees or other costs to the University of Southern California for the spring 2020 academic term may be eligible to receive a cash payment from a class action settlement.

The University of Southern California and the Board of Trustees of the University of Southern California agreed to pay $10 million to settle a class action lawsuit. The lawsuit alleged USC failed to provide in-person instruction and services after transitioning to remote learning in response to the COVID-19 pandemic and that students were entitled to partial refunds of tuition and certain fees or costs for the spring 2020 academic term.

Who are the class members?

Class members are students who paid or were obligated to pay tuition, fees or other costs to USC for the spring 2020 academic term.

The settlement administrator used USC's records to determine eligibility.

How much can class members receive?

Pro rata payment: The total settlement fund is $10 million. After deducting attorneys’ fees, service awards for class representatives and administrative costs, the settlement administrator will distribute the remaining amount equally among all eligible class members who do not opt out.

If any checks remain uncashed, the administrator will donate the funds to the USC Student Basic Needs Fund to provide additional student aid.

No action needed to receive compensation

Class members do not need to file a claim to receive their payment. The settlement administrator will automatically send payments to the last known mailing address on file with USC. Those who prefer to receive their payment by Venmo or PayPal or need to update their address can complete the election form (coming soon) on the settlement website by Feb. 20, 2026. Alternatively, they can mail their updated information to the settlement administrator.

Settlement administrator’s mailing address: 1650 Arch St., Suite 2210, Philadelphia, PA 19103

Payout options

• Venmo (if selected via the election form)
• PayPal (if selected via the election form)
• Paper check

$10 million settlement fund breakdown

The $10,000,000 settlement fund covers:

• Settlement administration costs: $50,000
• Attorneys’ fees: Up to $3,333,000
• Attorneys' costs and expenses: To be determined
• Service awards to class representatives: Up to $10,000 each
• Payments to eligible class members: Remainder of the fund

Important dates

• Election form deadline: Feb. 20, 2026
• Exclusion deadline: Feb. 20, 2026
• Final approval hearing: March 27, 2026

When is the USC tuition and fees settlement payout date?

The settlement administrator will distribute cash awards approximately 70 days after the court resolves appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged that USC failed to provide in-person instruction and services for part of the spring 2020 academic term after transitioning to remote learning due to the COVID-19 pandemic. The plaintiffs claimed they were entitled to partial refunds of tuition and certain fees, arguing the value of remote instruction was less than in-person services.

USC denied all allegations, stating government orders mandated the transition and that it disclosed the possibility of changes in course offerings. Both parties agreed to settle to avoid the expense and uncertainty of continued litigation.

Sources

1. Settlement FAQs
2. Class notice
3. Settlement agreement