A federal judge decided last week that South Dakota’s lawsuit against the NCAA regarding their $2.8 billion settlement with the Power Four conferences will stay in state court.

The South Dakota Board of Regents, along with State Attorney General Marty Jackley, sued the NCAA last year, saying the NCAA’s $2.8 billion settlement, which is meant to compensate athletes, would burden smaller colleges, like South Dakota State University and the University of South Dakota.

The settlement stems from a 2021 U.S. Supreme Court ruling that the NCAA’s ban on payments for student-athletes violated antitrust laws and would require NCAA member schools to contribute to a settlement fund over the course of 10 years.

The NCAA filed to move the case to federal court, arguing that the settlement’s provisions and implications stretch across state lines.

Karen Schreier, a U.S. district judge, signed an order that denied the NCAA’s request.

Dates for court proceedings for the lawsuit, filed in Brookings County, have not been scheduled.

Stay with The Collegian for developments on this story.