Trump University Class Action Survives Motion to Dismiss

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Donald Trump continues to face a class action lawsuit over alleged misrepresentations of his now defunct Trump University, following a federal judge’s order denying a motion for summary judgment.

U.S. District Judge Gonzalo P. Curiel ruled that plaintiff Art Cohen succeeded in raising a genuine question of whether Trump had actively participated in the management of Trump University, a business offering live seminars on real estate investing.

The plaintiff also successfully raised questions as to whether Trump knowingly participated in a scheme to defraud, according to the order.

In his Trump University class action lawsuit, Cohen alleges Trump himself made statements in promotion of Trump University seminars, promising that he could turn anyone into a successful real estate investor.

Promotional materials for the seminars allegedly stated that the instructors were hand-picked by Trump.

Judge Curiel notes in his order that Cohen submitted evidence showing Trump himself reviewed and approved all advertisements.

When asked in deposition whether he was aware of any marketing materials for Trump University bearing his name that he didn’t approve, Trump reportedly wavered at first, then denied being aware of such materials.

In a separate order, Judge Curiel denied requests by several news media organizations to release video recordings of two depositions of Trump conducted earlier.

The judge said that while there is significant public interest in the content of those videos, the risk of tainting the jury pool outweighed that interest. Edited segments of the deposition videos would likely appear in media reports and in political advertisements, potentially affecting the opinions of prospective jurors, the judge concluded.

Cohen alleges he learned about Trump University in 2009 from an advertisement in the San Jose Mercury News. He first purchased a three-day real estate retreat for $1,495, then a “Gold Elite” program for $34,995, he claims.

In hindsight, Cohen alleges that Trump did not actually handpick the instructors at these seminars. He also claims Trump University was not an actual university.

“[T]hough Defendant promised ‘Trump University,’ he delivered neither Donald Trump nor a University,” Cohen says.

The plaintiff says that had he known the truth, he never would have purchased those seminars.

Cohen’s Trump University class action lawsuit raises a single claim for mail and wire fraud under the federal Racketeer Influenced and Corrupt Organizations Act, or RICO.

The plaintiff seeks to represent a Class consisting of all persons who purchased Live Events from Trump University in the U.S. from Jan. 1, 2007 through the present.

He seeks a damage award including punitive and treble damages, restitution and disgorgement of all allegedly ill-gotten gains, and reimbursement of court costs and attorneys’ fees.

Cohen is represented by attorneys Patrick Coughlin, X. Jay Alvarez, Jason A. Forge, Rachel L. Jensen, Daniel J. Pfefferbaum, Brian E. Cochran and Jeffrey J. Stein of Robbins Geller Rudman & Dowd LLP; and Amber Eck and Aaron M. Olsen of Zeldes Haeggquist & Eck LLP.

The Trump University Class Action Lawsuit is Art Cohen v. Donald J. Trump, Case No. 3:13-cv-2519, in the U.S. District Court for the Southern District of California.

UPDATE: On Nov. 18, 2016, President-elect Donald Trump has agreed to pay $25 million to settle two federal class action lawsuits over the now-defunct Trump University real estate seminar program, according to the New York Attorney General’s office.

UPDATE 2: The Trump University Live Events class action settlement is now open! Click here to file a claim.

UPDATE 3: On March 31, 2017, a federal judge signed off on a class action settlement against Trump University, finding that the parties arrived at an agreement that was “fair, reasonable, and adequate.”

UPDATE 4: On Feb. 6, 2018, the 9th U.S. Circuit Court of Appeals rejected a challenge to the $25 million Trump University class action settlement, which means that eligible Class Members who filed timely and valid claims are one step closer to receiving payment.