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Third Circuit Appears Skeptical Of Proposed Class Action In Alleged Rutgers Business School Rankings Fraud

Following up on my previous posts:

Law360, 3rd Circ. Wary Standing Exists In Business School Fraud Suit:

The Third Circuit on Thursday appeared skeptical that a former Rutgers University student could bring a proposed class action alleging the university inflated its full-time MBA program’s rankings, questioning how he could have been injured if he wasn’t enrolled in the program.

U.S. Circuit Judge Stephanos Bibas called the allegations in Lorenzo Budet’s complaint against Rutgers Business School alleging that it inflated postgraduate employment data related to its full-time MBA program by hiring its own graduates “fairly sketchy,” repeatedly questioning his attorney about what was wrong with the bargain that Budet purportedly didn’t receive.

“Your complaint’s allegations are fairly sketchy. You say you didn’t get the benefit of the bargain, but you don’t pin down what the theory is on which you didn’t get the benefit of the bargain. That’s what I’d like to know about. So what is the subject of the bargain your client didn’t get?” Judge Bibas asked.

Because Rutgers marketed its business school as a high-ranking program based on the allegedly inflated rankings, Budet’s attorney Tyler Burrell argued, Budet didn’t get to receive an education at a topflight graduate program as Rutgers promised.

Budet, however, wasn’t enrolled in the university’s full-time MBA program, or even its part-time MBA program, Judge Bibas noted — he was enrolled in the university’s part-time supply chain management MBA certification program.

“How do you tie the inflated ranking of the full-time MBA to his decision to enroll in the certificate program? What do you plead? And what could you plead about that?” Judge Bibas asked.

TaxProf Blog coverage of the Temple business school rankings scandal: 

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