The Nonprofit:
The International Association of Eating Disorders Professionals (IAEDP) certifies professionals who provide care for eating disorders.
Its certification program is central to its mission and establishes the standards practitioners across the profession rely on to demonstrate their qualifications.
The Incident:
A group of eating disorder professionals alleged that IAEDP’s certification programs had become so influential that practitioners were effectively forced to keep meeting its paid requirements in order to remain competitive in their field.
The Legal Action:
A lawsuit was filed alleging that IAEDP’s certification requirements violated antitrust law.
The plaintiffs said IAEDP had too much control over who could compete in the eating disorders field and that practitioners effectively had to keep paying dues and fees to stay competitive.
The case later expanded into a proposed class action with antitrust claims and allegations under the Racketeer Influenced and Corrupt Organizations Act, or RICO.
According to the lawsuit, the original plaintiff and the proposed class members were dues-paying IAEDP members who were board certified in eating disorders.
They claimed they suffered financial harm because of IAEDP’s alleged monopoly over the certification process and other fraudulent conduct.
The Coverage:
After receiving a formal demand from the plaintiffs, IAEDP contacted its insurance broker, who notified Nonprofits Insurance Alliance (NIA) about the claim.
After reviewing the claim, NIA agreed to provide legal defense under IAEDP’s Directors & Officers (D&O) policy. NIA also reserved the right to determine whether every part of the claim was covered.
The Result:
The lawsuit started in Texas and was later moved to federal court in Illinois.
For three years, the plaintiffs repeatedly revised their claims, and the defense team continued responding and working to narrow the case. Over that time, more than $250,000 was spent defending the case.
Additionally, the plaintiffs’ counsel took a highly confrontational approach. He challenged IAEDP both in court and outside the courtroom, including through public statements and blog posts criticizing the organization and directed at the international organization’s independent local chapters.
During the litigation, the defense team worked with IAEDP to respond to these tactics and manage the additional issues they created.
In July 2026, the court dismissed the remaining claims and declined to let the case move forward as a class action. The plaintiffs decided not to challenge that decision.
The case is now over, and IAEDP continues its work today.
How Can Your Nonprofit Help Protect Itself?
Many nonprofits build influence in their fields by establishing certifications or standard-setting programs that others come to rely on.
That kind of authority is often a sign that a nonprofit’s mission is working, but it can also make the organization a target.
Nonprofits with certification or standard-setting programs sometimes choose to work with their legal counsel to make sure they can clearly explain why their requirements exist, who reviews them, and how decisions are made.
Clear records and a consistent review process can help an organization respond if someone later questions or challenges those standards.
From the Claims Files stories are for general information only. They are simplified examples and do not guarantee coverage, a defense, or any specific outcome. Some losses described in this series may not be covered.
Coverage depends on the specific facts and on the terms, conditions, and exclusions in your policy. Contact your insurance broker or agent for guidance, and follow your policy’s claims reporting procedures if an incident may involve a claim.
This story is not legal, medical, financial, or professional advice. In an emergency, contact local emergency services first. Any risk management practices mentioned are general suggestions and may not apply to every nonprofit. Follow all applicable laws, licensing rules, and reporting requirements.
