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

President TrumpDonald John TrumpTrump administration eyes proposal to block jet engine sales to China: report Trump takes track to open Daytona 500 Brazile 'extremely dismayed' by Bloomberg record MORE as well as his adult children Donald Trump Jr.Donald (Don) John TrumpTrump Jr., Meadows wear matching Trump jackets on 'Fox & Friends' Group auctioning off hunting trip with Donald Trump Jr. Trump allies to barnstorm Iowa for caucuses MORE, Eric TrumpEric Frederick TrumpHouse Democrats question Secret Service on payments to Trump properties Trump hotels charge Secret Service up to 0 per night while protecting him: report Beach Boys's Brian Wilson asks fans to boycott concert at hunting event featuring Donald Trump Jr. MORE and Ivanka TrumpIvana (Ivanka) Marie TrumpManufacturers group kicks off campaign to close the industry's skills gap Fed chief issues stark warning to Congress on deficits Rally crowd chants '46' for Donald Trump Jr. 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.”