Despite challenge, $25M Trump University settlement will stick

NY AG Eric Schneiderman said he was pleased with the outcome

New York /
Feb.February 06, 2018 01:20 PM

Donald Trump holding a media conference announcing the establishment of Trump University on May 23, 2005 in New York City (credit: Getty Images)

A $25 million settlement between President Trump and former students of his defunct for-profit real estate school Trump University will stand after surviving a challenge from a Florida bankruptcy attorney

Politico reported that Sherri Simpson, a Fort Lauderdale-based lawyer and former Trump University customer, lost her appeal of the settlement after she sought to take Trump to trial over $19,000 she paid for courses and a mentorship program. The decision from the 9th Circuit Court of Appeals cited the “significant hurdles” of a jury trial against the sitting president as one reason justifying the settlement.

Shortly after his election in 2016, Trump agreed to pay $21 million to settle two class action lawsuits in California and $4 million to settle an action brought by New York State Attorney General Eric Schneiderman. The settlements will be spread among about 4,000 former Trump University customers, with claims ranging from $1,500 to $35,000. In a Tuesday statement, Schneiderman said he was “pleased” with the 9th Circuit’s decision.

Founded in 2004, Trump University started as a for-profit online course program, ostensibly designed to teach novices the ins and outs of the real estate business with instructors “handpicked” by Donald Trump himself. But it soon focused more on selling live seminars run by motivational speakers, many of whom allegedly had no real estate experience, and who were instructed to pitch mentorships that cost as much as $35,000. Allegations that Trump University misled customers about the now-president’s actual involvement in the program, and that it provided students with false information and illegal advice, sparked litigation or consumer fraud investigations in several states. Trump University ended most of its operations in 2010. [Politico]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
Douglas Elliman CEO Dottie Herman on FOX
Elliman CEO: ‘People are afraid to walk in NYC’
Elliman CEO: ‘People are afraid to walk in NYC’
Village Preservation executive director Andrew Berman (iStock, Village Preservation)
Manhattan CB2 votes against Soho/Noho rezoning
Manhattan CB2 votes against Soho/Noho rezoning
Soho’s zoning madness, such as artists-only lofts and a ban on ground-floor retail, may finally change with a proposed rezoning.
The shopping district that banned retail: Soho’s incoherent zoning
The shopping district that banned retail: Soho’s incoherent zoning
Gov. Andrew Cuomo (Getty, iStock)
Cuomo vows to speed rent relief after pressure from Schumer
Cuomo vows to speed rent relief after pressure from Schumer
Eric Adams (Getty, iStock)
City program could supplement state rent relief — if next mayor signs off
City program could supplement state rent relief — if next mayor signs off
The tenants who won the affordable housing lottery at 15 Hudson Yards say the units are in an “entirely separate part of the building and with a different address.” (Hudson Yards, District Court of New York)
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
Lawsuit claims 15 Hudson Yards discriminates with “poor doors”
arrow_forward_ios

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

Loading...