Alliant International University lawsuits in recent years have ranged from a $480,000 wage-and-hour class action settlement finalized in 2025 to a transgender student’s civil rights case, a challenge to an academic dismissal, and several smaller employment and consumer disputes filed in California courts. The California-based for-profit institution, which converted from nonprofit status in 2015, has resolved most of these cases through settlement, dismissal, or arbitration rather than trial.
The 2025 Wage-and-Hour Class Action Settlement
The most significant recent case is Michelle Jackson, et al. v. Alliant International University, Inc., filed in San Diego County Superior Court on October 10, 2023 (case number 37-2023-00043742-CU-OE-CTL). The suit combined a class action with claims under California’s Private Attorneys General Act and alleged wage-and-hour violations under state labor law.1CABIA. Michelle Jackson et al. v. Alliant International University, Inc.
The parties reached a gross settlement of $480,000 in July 2025. The allocation included $159,984 for attorney fees, $15,000 in PAGA penalties, $10,000 for litigation expenses, $15,000 for settlement administration, and $10,000 in plaintiff awards. The named plaintiff received an individual PAGA payment of $3,750. The settlement covered 84,307 work weeks within the class period, and plaintiff’s counsel was Thomas D. Rutledge.1CABIA. Michelle Jackson et al. v. Alliant International University, Inc.
Kellen Bennett’s Civil Rights Case
In October 2012, former California School of Professional Psychology student Kellen Bennett, a transgender man, sued Alliant in San Francisco County Superior Court. The case, Kellen Bennett v. Alliant International University et al. (CGC-12-525203), also named two individual defendants, Elizabeth Milnes and Gregory Wells.2PlainSite. Kellen Bennett v. Alliant International University et al.
Bennett alleged that his treatment at the university worsened after he disclosed his transgender status to classmates in October 2011. He said his performance reviews turned negative, he lost a postdoctoral internship that had previously been offered to him, a faculty member used a transphobic slur in his presence, and another faculty member told students to “watch Bennett.” Alliant’s then–general counsel Jennifer Wilson “vigorously disputed the charges” and said the allegations did not reflect the university’s values.3HuffPost. Kellen Bennett
The case ended in a series of dismissals with prejudice: Wells in March 2013, Milnes in November 2013, and the entire action against all remaining parties on December 9, 2013. Pending summary adjudication motions filed by the university and Milnes were taken off calendar after the dismissal. The court record does not indicate whether the dismissal followed a settlement.2PlainSite. Kellen Bennett v. Alliant International University et al.
Challenge to an Academic Dismissal
In April 2020, a former CSPP student, Ariana Shayan, filed a petition for a writ of administrative mandamus in Los Angeles County Superior Court challenging her permanent dismissal from the clinical psychology program. Alliant had found her in violation of its Student Code of Conduct for “unauthorized collaboration” and “examination behavior,” effectively accusing her of cheating.4UniCourt. Ariana Shayan vs. Alliant International University
In February 2021, Judge Mitchell L. Beckloff issued a tentative order granting the petition. The court accepted that Shayan had admitted to unauthorized collaboration but found the separate examination-behavior finding rested on “uncorroborated, multi-layered hearsay” rather than substantial evidence. Judge Beckloff ordered the university to reconsider, saying the court had “real doubt” that the same dismissal penalty would have been imposed without the unsupported cheating finding. The case was ultimately dismissed with prejudice in November 2023.4UniCourt. Ariana Shayan vs. Alliant International University
Other Cases on the Docket
Several additional actions have moved through California courts:
- Suni Petersen v. Alliant International University was filed in San Francisco County Superior Court in November 2019. Alliant petitioned to compel arbitration the following month, seeking to move the dispute out of court.5Trellis Law. Suni Petersen v. Alliant International University
- Jennifer Lynn Brown et al. v. Alliant International University, a consumer debt case with a $10,000 claim amount, was filed in San Francisco County Superior Court in July 2015 and dismissed with prejudice about six weeks later.6Trellis Law. Jennifer Lynn Brown et al. vs. Alliant International University
- Aba v. Alliant International University, Inc., a Los Angeles appellate matter, was voluntarily dismissed by stipulation in February 2023.7UniCourt. Aba v. Alliant International University, Inc.
- Gardner v. Alliant International University, Inc., a labor and employment case, was filed in Sacramento County Superior Court in April 2024.7UniCourt. Aba v. Alliant International University, Inc.
Arbitration and Federal Student Loan Protections
Alliant’s catalog includes formal arbitration provisions, and the record in the Petersen case shows the university has invoked those clauses when sued.5Trellis Law. Suni Petersen v. Alliant International University There is a carve-out worth knowing about if you borrowed federal loans to attend. The university’s annual notice states it will not block students from joining class actions or filing individual lawsuits related to federal Direct Loans or the educational services those loans paid for, and any voluntary arbitration of borrower defense claims must be agreed to after the dispute arises, not as a condition of enrollment.8Alliant International University. Student Consumer Information Brochure
Context Behind the Student Complaints
Some of the legal friction tracks concerns about program outcomes relative to cost. Data from the Association of State and Provincial Psychology Boards, covering first-time test takers from 2017 through 2019, shows Alliant’s CSPP campuses posting EPPP pass rates well below the national average for accredited doctoral programs, which generally exceeds 80%. Alliant’s PsyD pass rates ranged from roughly 41% at the Fresno and Sacramento campuses to about 52% at the Los Angeles and San Francisco Bay campuses. PhD pass rates ran higher, between approximately 56% at Fresno and 71% at San Francisco Bay, but most still lagged the national benchmark.9California Board of Psychology. Psychology Licensing Exam Scores by Doctoral Program Graduates who cannot pass the licensing exam cannot practice independently as psychologists.
The institutional backdrop also shifted in 2015, when Alliant converted from a nonprofit to a for-profit benefit corporation, reportedly the first regionally accredited nonprofit to make that move. It became part of the Arist Education System, owned by the German media company Bertelsmann and initially funded by University Ventures. Alliant’s president at the time described the prior financial model as “pretty well broken,” citing the lack of an endowment.10Inside Higher Ed. Nonprofit University Becomes Benefit Corporation11Higher Ed Dive. Alliant International University Becomes For-Profit Benefit Corporation As a for-profit institution, Alliant is regulated by the California Bureau for Private Postsecondary Education and subject to federal oversight, including the 90/10 rule on federal financial aid revenue.