IOWA CITY, Iowa (KWWL) -- ACT, Inc. will pay $16 million to students who claim the company provided disability information about them to colleges and universities without their permission.
The class action lawsuit filed in California in August 2018 also claims this created barriers for them when trying to participate in the ACT's college recruitment program, known as Educational Opportunity Service (EOS) and allowed colleges to search for prospective applicants through EOS based on the type of their disabilities.
Per the settlement agreement, the Iowa City-based company agrees to stop or change certain practices related to the collection and use of disability-related information. As part of the settlement, ACT denies any liability or wrongdoing. They also dispute that any of the plaintiffs sustained any damages due to the alleged acts.
The $16 million settlement will only go toward plaintiffs who lived in California at the time they took the ACT Test or took the ACT Test in California. The money will also go toward legal fees and administrative costs.