Here's the thing about online learning. I've never checked, but I do understand that SJU charges a lot more than other schools for on line learning. Some people with influence have spoken about trying to get the school to bring these costs into line with competing schools. However, I'm also pretty sure that our costs are higher because of smaller class size online.
The thing about online learning as opposed to face to face is bandwidth. In face-to-face learning, there is a limit to how many students can register and fit into a classroom or lecture hall. In online learning, there are no such restrictions, so that the overall cost of providing remote classwork is lower. You can have one professor and 10 grad assistants for a course with 400 kids registered.
Universities didn't profit from sending kids home. Groundskeepers still have to maintain the landscape, custodial staff and security are still required, and teachers and administrators still get paid. The school didn't profit in the traditional way that schools who offer remote learning are able to do at a lower cost.
The kid waited until the end of the semester to file his suit. He could have dropped his classes and perhaps found a sympathetic judge to require the school to refund tuition. But this kid wanted to earn his credits, but for free. His teachers got paid, the school continues to run without laying off hundreds, and all of that costs money.
I do agree that schools should refund or credit students for meal plans unused, and also some type of adjustment for housing.