The Federal Trade Commission (FTC) has agreed to dismiss all aspects of its Biden-era lawsuit against Grand Canyon University's president and former parent organization, marking the end of a years-long battle regarding the school's nonprofit status and alleged deception regarding the cost of its doctoral programs.
"As we have stated from the beginning, not only were these accusations false, but the opposite is true," GCU President Brian Mueller said, according to a Friday press release. "We go above and beyond what is required in our disclosures and are recognized as a leader in this area."
Mueller went on to assert that the federal government's five investigations into GCU, conducted by multiple agencies, were "ideologically driven, weaponized government actions" that were not fairly applied to other institutions of higher education.
In the unanimous ruling voted on by FTC Chairman Andrew N. Ferguson and two commissioners, Ferguson implied the Biden administration was to blame for the situation.
"This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss," he said.
Ferguson further noted the FTC's ruling comes in the wake of GCU's recent legal victory against the Department of Education in the U.S. Ninth Circuit Court of Appeals, the revocation of a large fine from the department and confirmation from the IRS that the school's 501(c)(3) nonprofit status is legitimate after a four-year audit.
In January 2024, the FTC slapped GCU with a lawsuit alleging the school deceived students about the costs of its doctoral program and its nonprofit status while engaging in illegal telemarketing practices.
The FTC's action came months after the Department of Education levied an unprecedented $37.7 million fine against the school, claiming it misrepresented the cost of its doctoral programs on its website.
The Department of Education stated that, despite advertising a cost of $40,000 to $49,000, less than 2% of GCU doctoral graduates completed their courses of study within that price range, due to the requirement of additional continuation courses that often added an additional $10,000 to $12,000.
In May, GCU was cleared of any wrongdoing by a Joint Stipulation of Dismissal order issued by the Department of Education's Office of Hearings and Appeals, which ruled "there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed."
GCU, which was founded in 1949 as a nonprofit college by the Southern Baptist Convention, had been tussling with the federal government for years, beginning when it sued in 2021 after the department rejected its nonprofit status for the purposes of Title IV funding.
After becoming a for-profit institution in 2004 amid financial difficulties, the school sought to revert to a 501(c)(3) tax-exempt Arizona nonprofit status in 2018, which was approved by the IRS, Higher Learning Commission, State of Arizona, Arizona Private Postsecondary Board and NCAA Athletics.
"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 Friday.
"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," he added.
During an interview with The Christian Post in 2023, Mueller suggested the exorbitant fine was part of a larger attempt under the Biden administration to single out influential Christian institutions for punishment. He noted the similar $37 million fine against Liberty University for alleged violations of the Clery Act, a case the school ultimately settled last year by agreeing to pay $14 million.
Mueller observed at the time how the penalties against GCU and Liberty University dwarfed the Department of Education's $2.4 million fine against Penn State for not reporting Jerry Sandusky's sexual abuse of underage boys, as well as the $4.5 million fine against Michigan State regarding Larry Nassar's sexual assaults against hundreds of young athletes.
Originally published by The Christian Post
