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The DOJ sued Yale over its use of race in admissions in October, citing discrimination against white and Asian American applicants. It withdrew the suit and Title VI violation notice on Wednesday.
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The Justice Department said its two-year investigation found that race is "the determinative factor in hundreds of admissions decisions each year." Yale categorically denies the allegation.
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The Ivy League schools have been singled out in a federal crackdown on institutions of higher learning for allegedly not reporting hundreds of millions of dollars in foreign donations.