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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.
After intense negotiations between both parties and New York Attorney General Eric Schneiderman, the settlement was announced just minutes before a San Diego federal judge convened a hearing on whether to proceed with a jury trial schedule for Nov. 28 in one of the lawsuits.
“Donald 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 phony university. Today, that all changes,” Schneiderman said. “Today’s $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university.”
Under the proposed settlement, the majority of the $25 million is expected to be dispersed to former Trump University students who paid about $1,500 for a three-day seminar or as much as $35,000 for an in-person mentorship.
Specifically, $21 million will go to the two San Diego cases and $4 million to the state of New York. Any remaining funds will pay costs incurred by the attorneys who filed the class action lawsuits. Plaintiffs’ attorneys purportedly agreed to forgo their attorneys’ fees.
The Trump University class action lawsuits, filed separately by plaintiffs Art Cohen and Sonny Low, allege that the marketing of Trump University misled students by claiming that the instructors were handpicked by Trump and that the school promised to teach his investing secrets.
The lawsuits assert that students in California and New York were tricked into paying up to $35,000 for the president-elect’s real estate seminars.
Just this past week, the plaintiffs urged U.S. District Judge Gonzalo P. Curiel to proceed with the trial, opposing arguments from Trump’s counsel that forcing the president-elect to stand trial at this time would hamper “imperative transition work.”
According to the Associated Press, during the court hearing in San Diego Friday, counsel for Trump emphasized that the settlement agreement included no admission of liability on Trump’s part, stating that they had “no doubt” he would prevail if the cases went to trial, but added “resolution of these matters allows President-elect Trump to devote his full attention to the important issues facing our great nation.”
The agreement is only a proposal for settling the cases in both California and New York. Judge Curiel must approve the settlement and under federal law, notices of the settlement will be sent to former Trump University students, who could object to the deal or opt out of it, the Wall Street Journal reports.
The plaintiffs and Class are represented by 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 Lawsuits are Art Cohen v. Donald J. Trump, Case No. 3:13-cv-2519 and Low v. Trump University LLC, et al., Case No. 3:10-cv-00940, both filed in the U.S. District Court for the Southern District of California.
UPDATE: The Trump University Live Events class action settlement is now open! Click here to file a claim.
UPDATE 2: 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 3: 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.
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16 thoughts on$25 Million Settlement Reached in Trump University Class Actions
UPDATE 2: 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: The Trump University Live Events class action settlement is now open! Click here to file a claim.
this is no surprise…….he will always settle because he would never want to be deposed under oath…we all know he lies all the time, just look back on his campaign….the difference is that under oath his lies have consequences
btw…let me know when the IRS audit is over so another lie will be exposed…you will never see his tax return….just like he won’t build a wall, Mex. will not pay for it, he will not pursue HRC, he will not totally discard Obamacare (he already said he likes that kids can be covered up to 26 on parents insurance + pre-existing conditions), he will not deport 11-14 million illegal immigrants, he will leave NATO….I’d keep typing but my fingers are tired but you get the idea (assuming you can understand the above)
Get over it! You lose!
There needs to be a lawsuit against Laureate University which the Clintons were in on and the one Mitt Romney was in on. I hate to see Trump settle this, BUT I understand why he did it. He spent his money to settle this case to get it out of the way — in order to keep focused on OUR country. You get out of a course what Effort YOU put in it. These “students’ were opportunistic and karma will get them for it.
I am DISGRACED BY THIS CROOK…thoise who fell for his lies COULD YOU NOT SEE THRU THE SHAM?!?! A GOOD FOR NOTHING…SILVER SPOON IN HIS MOUTH…THRONE OF GOLD…WALL STREET BOOTLICKER WILL NEVER REPRESENT US AMERICANS. only GOD can save us now!
I totally agree. he even mocked the settlement by tweeting that he settled for a “small fraction”. I dont know why the pla’ntiff would settle on something that was so evident, other than the fact that they dont want to be in the cross-hairs of the President Elect or Attorney General. I am very disappointed.
Wow, then that would make two in a row!
I read a scripture that goes well with what you just said.
Psalms 118: 8,9 It is better to take refuge in Jehovah, Than to trust in humans. It is better to take refuge in Jehovah, Than to trust in princes.
bravo
Stop! You all need to accept the fact that Trump won, he is human, and he is going to lead our nation better than the lying crook contender he beat and the useless swag he is replacing! Get over it and get on with your life! If you don’t like him you should pray for him rather than judge him lest YOU be judged! Government officials are raised up and or allowed to be put in their positions by God! So talk to God about it and ask for forgiveness for your judgmental attitude!!!!!!
A fraud for a President. What a stain on the face of this once-great nation…
Amen.
So I haven’t figured out yest why this does not involve ALL of the Corinthian Colleges? They all had the same practices and similar lawsuits. I went to FMU back in 2004 and accumulated a lot of debt for an education I can not use and false hope. I went in during the week for a tour and they had me going to class by Monday. They even helped we write an emancipation letter so I didnt have to include my parents income. I was young an naive and stuck paying for an education twice now and having to start taking the classes all over since they are not transferable.
They all played the same games FMU (where I went in Clearwater, FL) was the original school then it later it was bought out or changed to Everest due to the same practices and lawsuits. I have been told I am not eligible for borrower defense to repayment since my loans are not Federal Direct Student loans, they were through Salle Mae and now I believe my loans are with Nvient.
Most likely because the people who filed the lawsuit(s) didn’t go to Corinthian, they went to “Trump University”. The lawsuit was specifically against TU not that general scheme. There have been plenty of lawsuits of other fake universities, so if one hasn’t been filed against Corinthian, there just needs to be a/several person(s) to stand up and do it.
Great article,easy to understand.,