California State Bar settles suit with vendor over troubled exam for $5.25 million
The State Bar of California will receive $5.25 million in a settlement with the vendor contracted to administer the troubled February 2025 launch of its remote and in-person bar exam that was plagued by a host of technical troubles.
Along with the payout, Proctor U and its Meazure Learning unit will waive its outstanding invoice of $1.36 million, according to the settlement agreement announced on Monday. The state will dismiss its lawsuit against the company with prejudice within days of receiving the payment. Neither party admitted wrongdoing.
The news comes on the heels of the state auditor’s report last week that blamed the troubled exam on a host of questionable decisions that led to $5.1 million in costs, excluding those related to this lawsuit, plus millions more in lost revenue and legal costs.
Ironically, the move to launch the exam that allowed test-takers the option of taking it in person or remotely was an attempt by the cash-strapped State Bar of California to save money in the face of an anticipated $3.8 million deficit. According to the state bar, 3,886 examinees completed that exam.
“This settlement is a reasonable, appropriate and acceptable resolution for the State Bar that helps offset the costs the State Bar expended in response to the aftermath of the February 2025 bar exam, including refunds, waivers, and stipends provided to impacted applicants,” said State Bar General Counsel Ellin Davtyan in a press release.
The company’s initial quote to administer the February 2025 bar exam was about $1.7 million, according to the state bar. But with projections for increased attendance and the addition of projected costs for providing testing accommodations, the amount increased.
The suit, which alleged fraud, negligent misrepresentation and breach of contract, was originally filed in Los Angeles Superior Count on May 5, 2025.
As part of the settlement, Meazure Learning must transfer all exam-related data, including test-taker records, exam responses, proctor notes and videos, to the State Bar on encrypted storage media within 30 days. Once the State Bar confirms it has access to the data, Meazure has 21 days to permanently delete it from their systems.
After the February 2025 exam, the California Supreme Court ordered a return to the Multistate Bar Examination but the National Conference of Bar Examiners sunsets the Uniform Bar Exam in July 2028.
Now the state is under the gun to decide which exam to use. Under a new California law aimed at allowing candidates and law schools enough time to prepare for a new exam, there must be at least a notice of two years before the state can make substantial changes to how the exam is administered.
That means the California Supreme Court must make the final decision by the end of this month. The contract with Kaplan remains in force, and there has been discussion about Kaplan creating a future California-specific test.
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