Trump varsity suits settled for RM110m

STUNNING REVERSAL: Victory for 6,000 former students

UNITED States president-elect Donald Trump has agreed to a US$25 million (RM110 million) settlement in class action suits accusing the now-defunct Trump University of fraud — a deal that will spare him the embarrassment of further legal wrangling as he prepares to enter the White House.

“Today’s settlement is a stunning reversal by Trump and a major victory for more than 6,000 victims of his fraudulent university,” New York state Attorney-General Eric Schneiderman said on Friday.

“I am pleased that under the terms of this settlement, every victim will receive restitution and Trump will pay up to US$1 million in penalties to the state of New York for violating state education laws.”

Schneiderman’s spokesman said the settlement covered all three cases against Trump University: two in California and one here.

The agreement came just an hour before a hearing in a San Diego Federal Court to decide on a request by Trump — who is holding daily consultations on his new cabinet — to delay the trial.

The six-year-old suit, brought by former students, alleges that Trump University, which was not an accredited college or university, fleeced students with aggressive marketing.

Students paid as much as US$35,000 to enrol, wrongly believing they would make it big in real estate after being taught by experts hand-picked by Trump, the suit says.

Trump’s lawyers countered that many students gave the programme a thumbs-up and those who failed to succeed have only themselves to blame. The school operated from 2005 to 2011.

In February, Trump tweeted that the programme had a 98 per cent approval rating: “I could have settled, but won’t out of principle!” AFP