The New York Attorney General Eric Schneiderman has said that Donald Trump has settled three Trump University lawsuits for $25m. The US president-elect was being sued by former students who paid $35,000 for real estate “secrets” from his “hand-picked” instructors.
Mr Trump faced three fraud lawsuits- which alleged the school misled students and failed to deliver on its promises in California and New York. A trial in one of the cases had been due to begin in San Diego on 28 November, although Mr Trump’s lawyers had attempted to delay the case.
Mr Trump was criticised during the election campaign for saying that the California judge hearing the case could not be impartial because he is of Mexican heritage.
Attorney General Eric Schneiderman said, “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. The victims of Trump University have waited years for today’s result and I am pleased that their patience – and persistence – will be rewarded by this $25 million settlement.”
Mr Schneiderman, who Mr Trump has attacked as a “lightweight”, had sought a $40m payout from Mr Trump over the university, which closed in 2010. He called Trump University a “fraud from beginning to end” adding that the organisation used “false promises to prey on desperate people”.
In June, Mr Trump said, “I will win the Trump University case. I already am, as far as I’m concerned. I could settle that case. I could have settled that case. I just choose not to.”
Trump University promised students the opportunity to learn from “hand-picked” teachers, that actually were not chosen by Mr Trump himself.
The closest students ever got to Mr Trump was having their photo taken beside a cardboard cutout of him, Mr Schneiderman has alleged. He also said that Mr Trump personally pocketed about $5m (£4m) in the “scheme”.
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