FTC drops lawsuit against Grand Canyon University service provider

August 16, 2025 2:31 am
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GCU said decision fully “exonerates” school after years of legal drama
The FTC voted to drop its lawsuit against Grand Canyon Education over allegations that it misled consumers about the costs of its doctoral program.

PHOENIX (AZFamily) — The Federal Trade Commission (FTC) voted to drop its lawsuit against Grand Canyon Education, the primary service provider for Grand Canyon University, over allegations that it misled consumers about the costs of its doctoral program.

“As we have stated from the beginning, not only were these accusations false, but the opposite is true,” GCU President Brian Mueller said. “We go above and beyond what is required in our disclosures and are recognized as a leader in this area.”

The lawsuit, which linked the largest Christian university in the country, was originally filed in December 2023 and was dismissed with prejudice on Friday, meaning it cannot be refiled.

At the time, the FTC claimed that the university lied to students by falsely advertising the costs of its doctoral programs. Instead, the feds claimed nearly all doctoral students would then need to take additional “continuation courses” that cost thousands of dollars more.

The lawsuit was previously dismissed against GCU itself because the FTC lacked legal authority over a nonprofit. State regulators also cleared the university of these claims.

In a statement, the FTC said that the case would present “very little upside” given that the U.S. Department of Education rescinded a record $37.7 million fine ordered against the university earlier this year. GCU also scored a previous win over its nonprofit status with the IRS.

GCU said that it believes these lawsuits were a “coordinated effort” within the Biden administration.

“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,” Mueller said. “That is a testament, first and foremost, to the strength and dedication of our faculty, staff, students and their families. Above all, it speaks to our unwavering belief that the truth would ultimately prevail.”

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