9th Circ. Upholds $25M Trump University Class Action Settlement

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

On Tuesday, 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.

The unanimous decision affirmed lower court decisions that dismissed a challenge to the Trump University settlement by Class Member Sherri Simpson, who wished to opt out of the Class and file a separate lawsuit, which the appellate court notes “would derail the settlement.”

Simpson argued that the notice she received in 2015 about the Trump University class action lawsuit, which was pending at the time, said that Class Members could opt out if a settlement was reached; however, the proposed Trump University settlement did not provide an option to opt out of the deal.

In Tuesday’s opinion, the appellate panel noted that Simpson was the only objector out of approximately 8,000 eligible Class Members. They found that Simpson had received the initial notice of the Trump University litigation but chose not to opt out by the deadline.

The panel points out that Class Members were expressly advised in the notice that inaction would cause them to release their rights to sue Trump University and Donald J. Trump separately about the same legal claims.

“Ten people opted out of the class by the deadline, which was November 16, 2015,” the 9th Circuit opinion says. “Simpson, who received the notice and was frequently in contact with class counsel throughout 2015 and 2016, chose not to opt out.”

The now-defunct Trump University was a for-profit entity which promised that it would teach Donald J. Trump’s “secrets of success” in the real estate industry. It was later the target of multiple lawsuits that alleged Trump University used false advertising to entice prospective students into attending free investor workshops.

Attendees of these free workshops were sold expensive multi-day educational seminars, at which they were allegedly pushed to invest tens of thousands of dollars in a mentorship program that would purportedly provide them with real estate guidance, resources and other benefits. However, these benefits were never provided, the Trump University class action lawsuits allege.

On Dec. 19, 2016, several weeks after Donald J. Trump was elected President of the United States, the parties reached a Trump University class action settlement. The defendants did not admit any wrongdoing.

Under the terms of the Trump University settlement, Class Members were expected to have a recovery of 80 to 90 percent of the amount they paid to Trump University.

Simpson reportedly submitted her Trump University claim more than one month before the claim filing deadline, which passed on March 6, 2017.

“As part of the claims submission process, she affirmed, by typing ‘I AFFIRM’ on an online form, the following statement: ‘I understand that I am bound by the terms of any judgment in these actions and may not bring a separate lawsuit for these claims,’” the appeals court opinion says. More than a month after filing her claim, Simpson filed an objection to the settlement and requested the court to allow her to opt out of the deal.

The district court approved the Trump University settlement over Simpson’s objection and refused to let her opt out. She subsequently filed the appeal. The 9th Circuit sided with the district court, finding that it “acted well within its discretion by approving the settlement.”

The plaintiffs are represented by Amber L. Eck of Haeggquist & Eck LLP. Simpson is represented by Deepak Gupta of Gupta Wessler PLLC.

The Trump University Class Action Lawsuit is Sherri B. Simpson, et al. v. Trump University LLC, et al., Case No. 17-55635, in the 9th U.S. Circuit Court of Appeals.