$25M Trump University Settlement Gets Final Court Approval

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A federal judge has signed off on a class action settlement resolving claims of false advertising against Trump University.

U.S. District Judge Gonzalo P. Curiel granted final approval of the Trump University class action settlement on March 31, finding that the parties arrived at an agreement that was “fair, reasonable, and adequate” to resolve the claims at issue.

The settlement resolves claims in two false advertising class action lawsuits, each accusing Trump University of failing to provide students with the real estate business education they were promised in the school’s promotional materials.

Plaintiffs Sonny Low, J.R. Everett and John Brown alleged that Trump University made several fraudulent representations about itself and the instruction it could offer.

The for-profit school allegedly held itself out as an “accredited university” featuring instructors that were purportedly handpicked by President Donald Trump – representations the plaintiffs say were false. Students paid as much as $35,000 to attend Trump University seminars, allegedly in reliance on these supposedly false representations.

Plaintiff Art Cohen brought a separate action against Trump himself, claiming that he had violated the Racketeer Influenced and Corrupt Organizations Act by promising that Trump University could turn anyone into a successful real estate investor.

In his order granting final approval, Judge Curiel commented that the deal appears extraordinarily good for the plaintiff Class.

He noted that Class Members are likely to receive more than 80 percent of what they paid for their Trump University seminars – significantly more than the 50 percent refunds that Class counsel expected when the settlement was first proposed.

Under terms of the Trump University class action settlement, individuals who purchased a Trump University live event in the U.S. may receive at least a partial refund of the purchase price.

Of the total $25 million settlement amount, around $21 million is designated for payments to about 7,000 former Trump University students. Judge Curiel commended plaintiffs’ counsel for taking no attorneys’ fees from the settlement.

The remaining $4 million will resolve allegations of fraud brought in a separate action by New York Attorney General Eric Schneiderman. The settlement includes $1 million in penalties for violating New York State education laws.

The settlement does not require Trump University or President Trump himself to admit fault.

The parties announced this Trump University class action settlement last fall, days before trial was scheduled to begin.

As recently as last October, the parties were contesting the admissibility of certain evidence to be presented at trial. Plaintiffs sought to enter evidence from the bankruptcy proceedings of certain former Trump University instructors, but the school’s attorneys argued that evidence would be more prejudicial than probative of any relevant facts.

Trump sought to postpone trial after he won the Nov. 9 presidential election. The court denied that request. The parties then announced this Trump University class action settlement.

The plaintiffs are represented by X. Jay Alvarez, Brian Cochran, Patrick Coughlin, Jason Forge, Rachel Jensen, Daniel Pfefferbaum and Jeffrey Stein of Robbins Geller Rudman & Dowd LLP and by Amber Eck and Aaron Olsen of Zeldes Haeggquist & Eck LLP.

The Trump University Class Action Settlement is Low, et al. v. Trump University LLC, et al., Case No. 3:10-cv-00940, and Cohen v. Donald J. Trump, Case No. 3:13-cv-02519, both in the U.S. District Court for the Southern District of California.

UPDATE: 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.