In her lawsuit, Rachel Dawson denies making antisemitic remarks and accuses the school of racial bias in its investigation and decision-making.

The Department of Education claims the University of Michigan may have filed "incomplete, inaccurate, and untimely disclosures" of foreign donations.

The U.S. Education Department said on Tuesday it opened a foreign funding investigation into the University of Michigan while alleging it found "inaccurate and incomplete disclosures" in a review of the university's foreign reports.