Report: Trump Settles Trump University Case For $25 Million

By Blake Neff Published on November 19, 2016

President-elect Donald Trump has reportedly decided to pay out $25 million to settle a class-action lawsuit concerning Trump University.

According to sources first cited by the New York Daily News, Trump was planning to pay out approximately $20 million to settle outstanding claims related to the program. The amount was later bumped up to $25 million in a follow-up confirmation made by Reuters.

Despite its name, Trump University was never an accredited school during its five years of operation. Instead, it was a series of real estate seminars where individuals could pay thousands of dollars to supposedly access the secrets of real estate success.

In 2013, a class-action lawsuit was filed against Trump, claiming the operation was a scam that relied on deceptive advertising practices to lure in vulnerable individuals for expensive but largely useless seminars taught by non-experts.

An employee guide submitted as evidence in the lawsuit show that Trump University staff were encouraged to use high-pressure sales tactics on potential customers.

“Money is never a reason for not enrolling in Trump University; if they really believe in you and your product, they will find the money,” the playbook said. “You are not doing any favor [sic] by letting someone use lack of money as an excuse.” At another point, the guide discusses how to get a sale from a person worried about going in debt to pay for a seminar.

The case became a political issue in the 2016 election, with Democratic nominee Hillary Clinton using it to hammer Trump as a dishonest fraudster. Trump, meanwhile, took self-inflicted damage when he argued that Judge Gonzalo Curiel was biased against him in the case due to his Mexican heritage.

Settling the case removes a major distraction from Trump’s ongoing transition to the presidency, and also spares the new president a potentially embarrassing courtroom defeat.

According to Reuters, $4 million of the $25 million settlement will go to the New York attorney general’s office, while the law firms representing former Trump University students will recover costs but not take a portion of the judgment. The settlement amount is just over half of the $40 million that was being sought in the original suit.

The settlement is a major reversal for Trump, who repeatedly vowed to fight the case to the end. In March, he dismissed the whole affair as a “phony lawsuit”that would be an “easy win” for him.


Send tips to [email protected].

Copyright 2016 Daily Caller News Foundation
Print Friendly, PDF & Email

Like the article? Share it with your friends! And use our social media pages to join or start the conversation! Find us on Facebook, Twitter, Instagram, MeWe and Gab.

Military Photo of the Day: Transiting the Baltic Sea
Tom Sileo
More from The Stream
Connect with Us