Trump to pay $25M to settle lawsuits
Defunct school for real estate investors allegedly defrauded students at nonaccredited university
President-elect Donald Trump agreed Friday to pay $25 million to settle several lawsuits alleging that his now-defunct school for real estate investors defrauded students who paid up to $35,000 to enrol in Trump University programs.
If approved by a judge, the deal announced by New York Attorney General Eric Schneiderman would settle a lawsuit he filed three years ago and two class-action lawsuits filed in California on behalf of former students.
The suits alleged Trump University failed to deliver on its promise to teach success in real estate. They accused the program of misleading students by calling itself a university when it was not accredited school and by saying Trump “hand-picked” instructors.
Messages left with his attorneys and a spokesperson were not returned Friday.
Trump denied the allegations and said in the campaign he would not settle. He told supporters at a May rally he would testify after winning the presidency.
“I could have settled this case numerous times, but I don’t want to settle cases when we’re right. I don’t believe in it. And when you start settling cases, you know what happens? Everybody sues you because you get known as a settler. One thing about me, I am not known as a settler,” Trump said at the time.
The deal doesn’t require Trump to admit wrongdoing. Schneiderman said the $25 million to be paid by Trump or one of his business entities includes restitution for victims and $1 million in penalties to the state.
Trump “fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phoney university,” Schneiderman said.
He called the settlement “a stunning reversal by Trump and a major victory for the over 6,000 victims of his fraudulent university.”
Trump’s attorneys said in a court filing last week that preparations for the White House were “critical and all-consuming.” Six months ago, when they unsuccessfully sought a delay until after Inauguration Day, lead attorney Daniel Petrocelli said the period between the election and swearing-in is hectic for a president-elect, but that it was preferable to a trial during the campaign.