Trump May Pay Roughly $20M to Settle Trump University Fraud Lawsuit
It also ends three different lawsuits that filed claims against his Trump University, including a class action suit in California, which had been scheduled to go to trial in late November, a second suit from California and one filed by Eric Schneiderman the Attorney General of NY.
Trump admits no wrongdoing under the deal.
On Friday, President-elect Donald Trump settled the cases concerning his fraudulent business Trump University for $25 million.
Schneiderman announced that each plaintiff will receive restitution and Donald Trump has to pay up to $1million in penalties to NY state.
Schneiderman’s office declined to comment about a potential settlement, but a spokesperson said the attorney general has “always been open to a settlement that fairly compensates the many victims of Trump University who have been waiting years for a resolution”.
“The victims of Trump University have waited years for today’s result and I am pleased that their patience – and persistence – will be rewarded by this $25 million settlement”.
The complaints allege that students were cheated out of thousands of dollars in tuition through deceptive claims about what they would learn and high- pressure sales tactics. Of that, $21 million will help reimburse those in the two California class action suit-many of whom were also part of the case brought by Schneiderman.
U.S. District Judge Gonzalo Curiel last week urged both sides to meet with a veteran judge for a final crack at coming to a settlement.
During his election campaign, Trump said that Curiel, who was born in IN to Mexican immigrant parents, could not be impartial because of Trump’s campaign pledge to build a wall on the U.S. -Mexico border to control illegal immigration. At a rally in May, he told supporters that he would travel to San Diego to testify after winning the presidential election.
In a February tweet, the then-candidate vowed to never settle the Trump University lawsuits “out of principle”. “And we haven’t asked for recusal, which we may do”, Trump said in May.
But with the president-elect apparently seeking to put the thorny matter to rest as he builds his cabinet, a deal was reached. “One thing about me, I am not known as a settler”, Trump said at the time. “I don’t believe in it”, he said at the time.
“You know what, let’s see what happens in court”, he added.
Donald Trump (l.) announced the establishment of Trump University in 2005. Everybody sues you because you get known as a settler. “Today, that all changes”, Schneiderman said in a statement.
Forge said the agreement was reached an hour before a hearing for Curiel to weigh Trump’s latest request to delay the trial until after the January 20 inauguration. It was discovered that people were pressured to spend up to $35,000 for classes taught by professors knowing Trump’s business philosophy and strategies.