Trump plans to settle Trump University fraud cases: report

Settlements expected to total $20-25 million, source tells CNBC

New York /
Nov.November 18, 2016 10:59 AM

President-elect Donald Trump is close to a settlement agreement for Trump University fraud lawsuits in California and New York, according to a source who spoke with CNBC on Friday. As terms of the reported settlement, Trump will admit no wrongdoing. The total sum of the settlement is expected to be between $20 and $25 million, the news outlet reported.

In a statement, a spokesperson for New York Attorney General Eric Schneiderman, who brought the case against Trump TRData LogoTINY in New York, said the office “has always been open to a settlement that fairly compensates the many victims of Trump University who have been waiting years for a resolution.”

Lawsuits in both states were filed on behalf of former students of Trump’s “university,” a series of classes designed to teach would-be real estate investors the ropes of the property biz. The lawsuits claim, among other things, that Trump University misled customers into believing that they would be receiving classes from teachers hand-picked by Donald Trump himself, teachers who allegedly pressured students into buying the most expensive class packages, including a $35,000 “Gold Elite” program. Schneiderman, who called Trump University a “bait-and-switch” scheme, sued Trump for $40 million.

Trump, who brags about his unwillingness to settle litigation, previously refused to settle these suits. He several times moved to dismiss them, but that was before he was elected as the 45th President of the United States on Tuesday, Nov. 8. In a May outburst, Trump suggested that California Gonzalo Judge Curiel’s Mexican heritage made him too biased to properly preside over the case in San Diego. Last week, Trump lawyers filed a motion to postpone the California trial until after his January inauguration. [CNBC]Will Parker 


Related Articles

arrow_forward_ios
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Make Greenland Great Again? Trump wants to buy Arctic territory
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Hamptons’ priciest summer rental to host MAGA extravaganza next month
Images of the Gateway Program and Pete Buttigieg (Photos via GDC, Getty, iStock)
Gateway tunnel lurches ahead with federal approval
Gateway tunnel lurches ahead with federal approval
Manhattan District Attorney Cy Vance and Donald Trump (Getty)
Manhattan DA convenes grand jury in Trump probe
Manhattan DA convenes grand jury in Trump probe
Donald Trump, New York Attorney General Letitia James, Manhattan District Attorney Cy Vance (Getty)
Tish James joins Cy Vance’s criminal probe of Trump Org
Tish James joins Cy Vance’s criminal probe of Trump Org
Eric and Lara Trump with 502 Bald Eagle Drive in Jupiter (Getty, Google Maps)
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
More Trumps buy in South Florida: Eric, Lara paid $3M for Jupiter home
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
Jamie Dimon, Steve Roth, Donald Trump and 555 California St. (Trump, Getty)
Vornado lines up $1.2B refi of SF tower co-owned with Trump
Vornado lines up $1.2B refi of SF tower co-owned with Trump
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...