Lawyers file details of $25M Trump U. settlement: report
Lawyers late Monday filed the details of President-elect Donald Trump’s $25 million settlement over lawsuits concerning Trump University, according to a new report.
Trump approved the proposed terms in an effort to resolve three pending lawsuits against the controversial real estate seminar program, Politico reported.
The settlement submitted to a federal court in San Diego indicates Trump is personally guaranteeing that $25 million will be given to the plaintiffs’ lawyers by Jan. 18, two days before his inauguration.
The settlement would bring to an end the unusual spectacle of a president-elect facing a civil class-action fraud trial.
Lawyers for both Trump and the plaintiffs issued a joint motion, according to the report, urging U.S. District Judge Gonzalo Curiel to give preliminary approval to the settlement.
“By any metric, this is a fair, adequate and reasonable settlement,” the lawyers said. “Both plaintiffs and defendants believe in the merits of their cases and compromised to reach this result.”
The suits alleged that Trump University was a deceptively marketed real estate training program that defrauded students.
The plaintiffs claimed Trump University asserted that its seminars were on par with prestigious universities and that the instructors were hand-picked by Trump, even though he did not know them.
Trump’s attorneys denied any fraud, however, arguing the promotional tactics are merely sales “puffery” past courts have allowed.
Trump and Trump University do not admit any wrongdoing in the settlement, Politico reported. Trump University participants are expected to get back roughly 50 percent of the fees they paid. Politico said the deal stipulates students who have received previous refunds, meanwhile, will get reduced payments or none at all.
Enrollees typically spent about $1,500 for a three-day seminar or up to $35,000 for a mentorship program, according to the report.
The $25 million total includes $4 million set aside to settle a separate state lawsuit brought in New York by state Attorney General Eric Schneiderman (D).
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