Newly revealed funding arrangement could threaten price-fixing lawsuit against Penn

A previously undisclosed litigation funding arrangement could jeopardize the status of a lawsuit accusing Penn of participating in a price-fixing scheme.

In a memorandum filed in a United States District Court on Thursday, two law firms representing the plaintiffs suing Penn said that they “deeply regret” failing to disclose that a third law firm — Gilbert Litigators and Counselors — had worked with an outside litigation funder. The ongoing lawsuit accuses Penn and 16 other universities of colluding to decrease the financial aid awarded to around 200,000 students over a 20-year period.

A University spokesperson declined to comment. A Penn spokesperson previously called the plaintiff’s claims in the lawsuit “baseless and unfounded” in a statement to The Daily Pennsylvanian.

In the filing, two law firms representing the plaintiffs — Freedman Normand Friedland and Berger Montague — apologized to Senior Judge Matthew Kennelly, who is overseeing the case. Kennelly is currently considering whether to certify the lawsuit as a class action case, which could intensify pressure on the remaining universities to settle.

“In failing to distinguish between the three plaintiff firms, the filings in support of fee and expense petitions in this matter unintentionally left the Court with an inaccurate impression with respect to the financial risks taken,” the March 19 filing read.

In a hearing on March 11, Kennelly expressed concern about being misled by the counsels and alluded to the possibility that the plaintiffs could withdraw their motion for class certification. 

Earlier this year, Kennelly ruled that Penn must face trial. If found guilty, Penn and the other four universities yet to settle — Cornell University, Georgetown University, the Massachusetts Institute of Technology, and the University of Notre Dame — could face approximately $2 billion in damages. 

Several universities originally named in the lawsuit previously reached settlements totaling nearly $320 million.

In a separate motion also filed on Thursday, GLC requested to be designated as supporting counsel for the lawsuit and agreed not to seek appointment as co-lead class counsel. The firm’s managing partner, Robert Gilbert, also apologized for “misleading” language and agreed to be “ethically screened off from further individual participation” in the case.

In a separate lawsuit filed in August 2025, Penn and dozens of other universities were accused of using binding early decision admissions to avoid offering financial aid to students.

Penn also previously faced a lawsuit alleging its use of financial information from noncustodial parents in divorced households amounted to price fixing. That case was dismissed by a federal judge in September 2025, who ruled that the plaintiffs failed to adequately allege harm. 

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