The Federal Trade Commission voted last week to drop a Biden-era lawsuit against Grand Canyon University.
“This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss,” a statement from the commission read. “These losses are compounded by recent events: Grand Canyon secured a victory over the Department of Education in a related matter before the Ninth Circuit; the Department of Education rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non-profit corporation designation.”
“We view it as imprudent to continue expending Commission resources on a lost cause. Because we have a duty to maximize consumers’ return on their tax dollars investment, we have decided against pursuing this matter any further,” the statement added.
In 2023, the Biden administration’s Federal Trade Commission (FTC) filed a lawsuit against GCU, claiming the university “deceived students by holding itself out as a non-profit institution and misrepresenting the costs and number of courses required to earn doctoral degrees.”
Grand Canyon University President Brian Mueller celebrated the case’s dismissal.
“As we have stated from the beginning, not only were these accusations false, but the opposite is true,” he said. “We go above and beyond what is required in our disclosures and are recognized as a leader in this area.”
Discussing the initial lawsuit from the Biden administration, Mueller said, “They threw everything they had at us for four years, and yet, despite every unjust accusation leveled against us, we have not only survived but have continued to thrive as a university.”
“That is a testament, first and foremost, to the strength and dedication of our faculty, staff, students and their families,” he said. “Above all, it speaks to our unwavering belief that the truth would ultimately prevail.”
In May, the Education Department pulled a $37.7 million fine from Grand Canyon University imposed by the Biden administration.
