Phoenix, Arizona — The Federal Trade Commission has dropped its lawsuit against Grand Canyon Education related to the university’s doctoral programs. This decision comes after the agency faced setbacks in previous motions to dismiss during a case initiated under the Biden Administration.
The FTC’s dismissal arrived shortly after the U.S. Department of Education canceled a significant $37.7 million fine levied against Grand Canyon University in 2023. This fine had been a focal point of the litigation against the university.
In a notable judicial victory for Grand Canyon Education, the U.S. Court of Appeals for the Ninth Circuit determined in November that the Department of Education had applied an incorrect standard when it denied the university’s application for nonprofit status in 2019. The FTC, in its statement announcing the dismissal, expressed concerns about the limited benefit of the case for consumers against the resources required to pursue it further. “We view it as imprudent to continue expending Commission resources on a lost cause,” the FTC stated, emphasizing a commitment to maximizing taxpayer returns.
The formal termination of the case was filed in an Arizona federal district court on August 15. Following the announcement, Grand Canyon Education President Brian Mueller, who also serves as CEO, expressed his satisfaction with the FTC’s decision. “From the outset, these claims have been unfounded, and we consistently operate well beyond the required standards in our disclosures,” Mueller noted in a press release. He characterized the allegations as politically motivated efforts by the federal government to interfere with the university’s achievements.
As the legal landscape shifts, a separate civil lawsuit remains pending against Grand Canyon Education. Filed in June 2024 by former doctoral students Tanner Smith and Qimin Wang, the suit accuses the university of misleading students regarding the financial commitments necessary to complete their doctoral programs. Additional plaintiffs have since joined the case, pointing to more than $8,000 in unexpected costs due to required continuation courses.
In May 2025, Judge Steve Logan of the Federal District Court ruled that most of the plaintiffs’ claims could progress after surviving a motion to dismiss. The court also directed the plaintiffs to revise their complaint regarding a previously dismissed racketeering claim.
Moreover, the Goldwater Institute has initiated its own legal action against Grand Canyon University related to the Department of Education’s earlier fine. This case, filed under the Freedom of Information Act, seeks documents that could illuminate the circumstances surrounding the fine, including communications between federal agencies. The Goldwater Institute believes these records might reveal a targeted effort against the university based on tenuous allegations.
With the recent developments, both the Department of Education’s retraction of the fine and the FTC’s decision signal changes in the environment for Grand Canyon Education. The various lawsuits and ongoing investigations reflect the complicated legal landscape surrounding for-profit education institutions in the current administrative climate.
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