FTC dismisses lawsuit against Grand Canyon University’s largest provider

PHOENIX — Grand Canyon University announced a unanimous decision by the Federal Trade Commission (FTC) to dismiss its lawsuit against the school’s largest provider, Grand Canyon Education.

The FTC said two other legal decisions helped influence the new governance to unanimously vote on dismissal.

A similar lawsuit was already dismissed by the U.S. Department of Education (DOE) back in May.

In November, the U.S. Court of Appeals for the Ninth Circuit ruled that the DOE used the wrong legal standard when rejecting the Phoenix private school’s conversion to nonprofit status.

For his part, FTC Chairman Andrew N. Ferguson noted the case began two years ago, well before he was appointed to the position in January 2025.

“This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss. These losses are compounded by recent events: Grand Canyon secured a victory over the DOE in a related matter before the ninth Circuit; the DOE rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non profit corporation designation,” Ferguson said in the release.

What does GCU say about the dismissal?

GCU President Brian Mueller said from the beginning of the lawsuit that Grand Canyon was targeted for is status as a Christian university.

“The language used by these officials, the record fines they sought, the baseless accusations they made all point to a broader ideological agenda,” Mueller said in a release.

What were the lawsuits about?

GCU was accused of withholding disclosures and misleading students about the price of its doctoral programs.

The allegations resulted in a record $37.7 million fine by the DOE that was eventually dismissed.

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