A proposed class action accusing Rutgers University of manipulating its MBA rankings was dealt a heavy blow Wednesday, as the Third Circuit ruled the lead plaintiff lacked standing because he was never part of the full-time MBA program at the heart of the case. The split decision affirms a New Jersey federal court’s dismissal, though the appellate panel modified it to be without prejudice — leaving the door open for future claims.
Plaintiff Lorenzo Budet, who had enrolled in Rutgers’ supply-chain management master’s program and a nondegree MBA certificate, alleged the school fudged job placement data by counting internal hires in violation of ranking rules. He argued that this inflated prestige trickled down to all Rutgers Business School programs.
But Judge Stephanos Bibas, writing for the majority, wasn’t convinced. He called Budet’s claims a “hodgepodge of theories” and likened his pleadings to “throwing spaghetti at the wall.”
Budet’s 2022 complaint accused Rutgers of secretly hiring six postgraduates through a temp agency in 2018 to boost career-placement data submitted to the MBA Career Services & Employer Alliance, which explicitly bars such tactics. He claimed this inflated data ultimately fed into U.S. News & World Report rankings.
Yet, the panel pointed out that nothing in the record showed Rutgers’ ranking actually dropped after the alleged scheme. At best, Budet’s counsel argued during oral hearings that rankings fell in 2024 — years after the alleged misconduct and two years after the lawsuit was filed.
“Budet does not plausibly plead that the alleged fraud changed the rankings, so he cannot trace any injury to Rutgers’s conduct,” the majority wrote.
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Third Circuit Tosses MBA Rutgers Fraud Suit, Citing Lack of Standing – USA Herald
