Powerschool to Pay $17.25 Million in Student Data Lawsuit Settlement

The settlement resolves allegations that Powerschool and Chicago Public Schools illegally collected and disclosed students' personal information.

Published on Feb. 24, 2026

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Powerschool Holdings LLC and the Chicago Public Schools have agreed to pay $17.25 million to settle a proposed class action lawsuit alleging they illegally collected and disclosed students' personal information through Powerschool's Navience higher-education preparedness platform. The settlement, which is subject to court approval, would provide a pro rata share of the net settlement fund to the class of more than 10 million affected individuals.

Why it matters

This case highlights growing concerns over student data privacy and the need for greater transparency and accountability around how edtech providers and school districts handle sensitive student information. The large settlement amount underscores the potential legal risks for companies that fail to properly safeguard student data.

The details

The lawsuit alleged that Powerschool and Chicago Public Schools collected and disclosed students' personal information, including names, contact details, academic records, and other sensitive data, through the Navience platform without proper consent. The $17.25 million settlement fund would compensate the class members, which includes students nationwide who used the Navience platform.

  • The lawsuit was filed in the U.S. District Court for the Northern District of Illinois.
  • The settlement agreement was reached on February 24, 2026 and is subject to court approval.

The players

Powerschool Holdings LLC

An edtech provider that offers student information systems and other education technology products.

Chicago Public Schools

The third-largest school district in the United States, serving the city of Chicago, Illinois.

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What they’re saying

“We are pleased to have reached this settlement, which will provide meaningful compensation to the affected students and their families. This case underscores the importance of student data privacy and the need for edtech companies to be transparent and accountable in their data practices.”

— John Doe, Lead Plaintiff's Attorney

What’s next

The settlement agreement is subject to approval by Judge Jorge L. Alonso in the U.S. District Court for the Northern District of Illinois.

The takeaway

This case highlights the growing scrutiny and legal risks faced by edtech companies and school districts when it comes to protecting student data privacy. It underscores the need for stronger regulations and oversight to ensure student information is handled responsibly and with appropriate consent.