Crossword Genius

Lawsuit covering university sale (7)

Ross

I believe the answer is:

auction

'sale' is the definition.
(I've seen this before)

'lawsuit covering university' is the wordplay.
'lawsuit' becomes 'action' ('action' can be a synonym of 'lawsuit').
'covering' indicates putting letters inside.
'university' becomes 'u'.
'action' going around 'u' is 'AUCTION'.

(Other definitions for auction that I've seen before include "Selling" , "Competitive sale" , "Lots are sold here!" , "Public sale to highest bidders" , "Caution about method of sale" .)

I've seen this clue in The Telegraph.
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