Law 360 reports that President-elect Donald Trump, accused of swindling students of his former Trump University program out of millions of dollars in separate lawsuits launched in California and New York, has agreed to settle the disputes for $25 million, according to a statement by New York Attorney General Eric Schneiderman on Friday.
A group of consumers launched complaints in California alleging the now-defunct Trump University used the “Apprentice” star’s image and reputation to sell the brand, saying he had “hand-picked” instructors for the real estate classes and purported to sell the businessman’s secrets to achieve wealth. The alleged deception lured people into paying as much as $35,000 to learn his investment strategies.
Schneiderman followed up with his own fraud suit in 2013, claiming some 6,000 former students were victims and lost millions of dollars. According to the New York AG, Friday’s deal includes $1 million in penalties to the state for violating state education laws.
“Donald Trump fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university. Today, that all changes,” 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.”