Donald Trump has agreed to settle lawsuits related to his now defunct Trump University for $25 million, according to the New York Attorney General’s office.
In the statement provided by CNBC, Attorney General Eric Schneiderman says it’s a major victory for over 6,000 student victims and he is pleased with the terms of this settlement.
“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," he said. “I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws."
The lawsuit alleged the real estate seminars failed to deliver on the education it promised. Schneiderman filed a civil suit while two law firms in California brought on two separate class action lawsuits.
"In 2013, my office sued Donald Trump for swindling thousands of innocent Americans out of millions of dollars through a scheme known at Trump University," Schneiderman added. "Donald Trump fought us every step of the way, filing baseless charges and fruitless appeal s and refusing to settle for even modest amounts of compensation for the victims of his phony university. Today, that all changes."
The New York Daily News broke down the deal negotiated by Trump’s lawyers, Schneiderman, and the law firms in California. Of that $25 million:
- “$21 million will help reimburse those in the two California class action suits — many of whom were also part of the case brought by Schneiderman.”
- "New York will get an additional $3 million to repay people who were not covered by the California lawsuits."
- "And Trump agreed to pay up to a $1 million penalty for violating New York education law for running an unlicensed university, the source said."
Trump will no longer have to appear in a California court to testify in a class action lawsuit, which was supposed to begin Monday (Nov. 28). He also did not admit any wrongdoing in the final agreement. A judge will have to sign off on the deal.
Earlier this month, Trump made a public announcement that he would not settle the matter. In what seems like an abrupt reversal, Trump and his team are making sure his transition into the presidency is as smooth as possible.