New York judge allows portion of lawsuit against Trump and his children to proceed

President TrumpDonald John TrumpTrump conversation with foreign leader part of complaint that led to standoff between intel chief, Congress: report Pelosi: Lewandowski should have been held in contempt 'right then and there' Trump to withdraw FEMA chief nominee: report MORE as well as his adult children Donald Trump Jr.Donald (Don) John TrumpDemocrats introduce bill to block taxpayer-funded spending at Trump properties Trump dismisses NYT explanation on Kavanaugh correction The Hill's Morning Report - Trump takes 2020 roadshow to New Mexico MORE, Eric TrumpEric Frederick TrumpSenior HUD official reprimanded for making political statements on the job Democrats introduce bill to block taxpayer-funded spending at Trump properties WaPo gives Eric Trump 4 Pinocchios after ObamaCare website claim MORE and Ivanka TrumpIvana (Ivanka) Marie TrumpTrump awards Yankees legend Mariano Rivera the Medal of Freedom The Hill's Morning Report - Trump takes 2020 roadshow to New Mexico 2020 is not a family affair, for a change MORE must face a portion of a lawsuit filed by former investors alleging they promoted fake marketing opportunities using the family's brand, a judge ruled Wednesday.

Reuters reported a Manhattan judge ruled the four can face state civil claims of fraud, unfair competition and false advertising, but dismissed federal Racketeer Influenced and Corrupt Organizations (RICO) Act claims also filed by the plaintiffs.


The investors argued in court documents that the Trumps were paid secretly to endorse a company, American Communications Network, and tricked them into thinking President Trump thought the business would succeed and provide a return on their investments.

An attorney for the investors told the news service that the case would go forward “to obtain justice for the plaintiffs, and thousands of other working Americans just like them, who each lost hundreds or thousands of dollars as a result of the defendants’ fraudulent scheme.”

Attorneys for the Trumps, who had sought a full dismissal of the case, told Reuters in an interview that they were "delighted" that the judge had decided to dismiss the federal charges and predicted that the state case would soon fall apart as well.

“We are delighted by the court’s decision,” attorney Joanna Hendon told the news service. “The RICO claims were baseless and should never have been brought, and we look forward to dispensing with the rest of the case.”