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In 1985 Phi Sigma Epsilon, in a very close vote, agreed to “merge” with Phi Sigma Kappa. A group of PSE alumni and undergraduate chapters realizing that this was not really a merger but a take over decided that the only way to save their traditions and heritage was to form a new fraternity. Now, Phi Sigma Epsilon had never taken any legal steps to protect their name so the new group decided to name themselves Phi Sigma Epsilon Association. Phi Sigma Kappa sued the new group. The PSE association decided to fight but PSK had much deeper pockets and the PSE association finally had to give up. In 1988 they changed their name to Phi Sigma Phi.
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