New York, NY, United StatesNov 18, 2016, 09.55 PM
US President-elect Donald Trump has reached a $25 million settlement in class action suits that saw his now-defunct Trump University accused of fraud -- a deal that will spare him the embarrassment of further legal wrangling as he forms his government.
"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," New York state attorney general Eric Schneiderman said in a statement.
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,' New York state attorney general Eric Schneiderman said
"I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws."
A spokesperson for Schneiderman's office said the settlement covers all three cases against Trump University: two in California and one in New York.
The agreement came just an hour before a hearing in a San Diego federal court was about to begin to decide on a request by Trump -- who is currently holding daily consultations on his new cabinet -- to delay the trial.
The six-year-old lawsuit brought by former students alleges that now-defunct Trump University -- which was not an accredited college or university -- fleeced students by tricking them with aggressive marketing.
Students paid as much as $35,000 to enroll, wrongly believing they would make it big in real estate after being taught by experts hand-picked by Trump, the suit says.
Trump's lawyers counter that many students have given the program a thumbs-up and those who failed to succeed have only themselves to blame. The school operated from 2005 to 2011.
In February, Trump tweeted that the program had a 98 percent approval rating: "I could have settled but won't out of principal!"