The Wharton School could face up to $37 million in damages after a federal judge denied its bid for summary judgment in an ongoing contract dispute last week.
In the Jan. 26 decision, United States District Judge Mary Kay Costello rejected Penn’s motion for the case to end before going to trial. The lawsuit stems from a 2021 partnership to develop online courses between Prysm Group — a technology consulting firm — and Wharton’s Aresty Institute of Executive Education.
In March 2025, the Prysm Group alleged that Wharton violated its contract by ending the program’s partnership. Months later, Penn argued that it justifiably terminated the contract as part of its motion for a summary judgement.
At the time, Penn argued that the Prysm Group used Wharton’s logo, trademark, and name in a program-related presentation but failed to compensate the school for its share of revenue.
A University spokesperson declined to comment on the “ongoing litigation” in a statement to The Daily Pennsylvanian.
In response to a request for comment, an attorney representing the Prysm Group directed the DP to the case's briefing materials.
Costello wrote that a “reasonable jury could find that the inclusion” of those materials “would not violate Prysm’s duties under the contract.”
“Although Wharton’s termination letter concluded that the breach could not be cured, a reasonable jury could find otherwise,” she added. “Indeed, there is no evidence that Prysm continued using the presentation after receiving written notice from Wharton.”
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Costello concluded, as a result, that “the question of whether Prysm materially breached the Agreement should be decided by a jury.”
“The Court similarly cannot decide whether Prysm materially breached the Agreement by failing to pay Wharton a 40% share of tuition revenue,” the ruling continued. “There are genuine disputes of material fact related to whether the parties adjusted the revenue split and whether Prysm was entitled to certain offsets. A jury must resolve these disputes.”
The online courses, which were never officially launched, created a blockchain economics certificate for professionals. The program — titled Economics of Blockchain and Digital Assets — was designed to be paid for with cryptocurrency.
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Staff reporter Hailey Hilsabeck covers facilities and infrastructure and can be reached at hilsabeck@thedp.com. At Penn, she studies cinema and media studies and English. Follow her on X @hhilsabeckk.
