The lawsuit against President Donald Trump regarding Trump University is finally at an end. Earlier this week a $25 million settlement was approved in federal court, ending litigation that first began when “two federal class-action fraud lawsuits and a parallel state court action” were brought forward by Eric Schneiderman, the New York Attorney General. The lawsuits “accused Trump U. of deceiving students by falsely claiming that Trump knew the instructors and that the school was an accredited university.” Instead of being an accredited university, Trump University was a for-profit training program for those interested in learning all of Trump’s “secrets to creating a real estate empire” while charging students up to $35,000 to attend. Additionally, students claimed they were “cheated out of tuition through high-pressure sales tactics and misleading claims about what they would learn.”
The lawsuit against President Donald Trump regarding Trump University is finally at an end. Earlier this week a $25 million settlement was approved in federal court, ending litigation that first began when “two federal class-action fraud lawsuits and a parallel state court action” were brought forward by Eric Schneiderman, the New York Attorney General. The lawsuits “accused Trump U. of deceiving students by falsely claiming that Trump knew the instructors and that the school was an accredited university.” Instead of being an accredited university, Trump University was a for-profit training program for those interested in learning all of Trump’s “secrets to creating a real estate empire” while charging students up to $35,000 to attend. Additionally, students claimed they were “cheated out of tuition through high-pressure sales tactics and misleading claims about what they would learn.”
The settlement itself was first approved last March, but was appealed by a Florida woman, Sherri Simpson, who claimed she “spent roughly $19,000 on Trump University workshops.” She appealed the settlement because she wanted to “opt out of the class action suit in order to pursue a separate suit against Trump, but the court rejected that.”
For those who don’t know what Trump University is, it was a so-called school open from 2005 to 2010 that “used false advertising and high-pressure sales techniques to lure students to free investor workshops at which they were sold expensive seminars and told they would be mentored by real estate gurus, leading to the loss of thousands of dollars in tuition.” How expensive were the seminars? Well, a one-year apprenticeship had a $1,495 price tag, while a “membership” cost more than $10,000. Gold Elite classes were $35,000.
The two Trump University class action lawsuits filed against Trump merged into one after Trump’s election, and shortly after becoming president he paid the $25 million to settle the suits. The money was held in escrow, though, awaiting final court approval. Before becoming president, though, it looked as if Trump would fight back against the lawsuits, so it’s a relief to many included in the lawsuit that the settlement was finally approved.
When commenting on the matter, Schneiderman said:
“For years, President Trump refused to compensate the victims of his sham university. His reversal in 2016 —and the large-scale settlement that resulted — opened the door for student victims to finally obtain the restitution they deserve. My office will continue to hold those who commit fraud accountable, no matter how rich or powerful they may be.”
So now that the settlement has been approved, how much can each of the plaintiffs expect to get? According to the ruling, all “plaintiffs are expected receive 80 percent to 90 percent of what they paid for Trump University programs.
Sources:
Federal court approves $25 million Trump University settlement
Trump pays out $25 million to settle Trump University litigation
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