Ibrahim Gardner
In 2018, a $25 million settlement was finalized for students who claimed they were defrauded by Trump University, a now-defunct real estate seminar founded by former US President Donald Trump. The settlement, which was reached after years of legal battles and Trump's refusal to compensate alleged victims, allowed thousands of former students to recover up to 90% of the costs they incurred while attending the controversial institution. Despite Trump's denial of any wrongdoing, the outcome marked a significant development in a scandal that plagued his presidency and raised questions about his involvement in potentially fraudulent activities.
| Characteristics | Values |
|---|---|
| Number of lawsuits settled | 3 |
| Total settlement amount | $25 million |
| Amount paid to students | $21 million |
| Amount paid to New York Attorney General's office | $4 million |
| Number of former students eligible for settlement | 7,000 |
| Number of former students who submitted claims | 3,700+ |
| Percentage refund for students | 80-90% |
| Year settlement was finalized | 2018 |
| Month settlement was finalized | April |
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What You'll Learn
- Sherri Simpson, a Trump University attendee, wanted to opt out of the class-action lawsuit and pursue separate legal action
- The court rejected Simpson's request to opt out of the class-action lawsuit
- The settlement will see Trump pay $25 million to students who were defrauded by Trump University
- Trump has denied any wrongdoing and said he settled due to a lack of time as President
- The settlement was paid by Trump's Las Vegas business partner, billionaire Phil Ruffin
Sherri Simpson, a Trump University attendee, wanted to opt out of the class-action lawsuit and pursue separate legal action
Trump University, founded in 2004 by Donald Trump and his associates, offered courses in real estate, asset management, entrepreneurship, and wealth creation. It was not a licensed university or college and did not confer degrees or college credit. The company operated from 2005 to 2010, during which it employed high-pressure sales tactics and misleading marketing practices to lure students into expensive seminars, promising to teach them the "'secrets of success' in real estate.
Simpson's request to opt out of the class-action lawsuit was rejected by the court. This rejection was upheld by the 9th Circuit Court of Appeals in San Francisco, which ruled unanimously that there was ample reason to approve the settlement. As a result, Trump agreed to pay $25 million to settle the lawsuits, with $21 million going to the participants in the class actions and $4 million to the New York Attorney General's office. This settlement paved the way for thousands of former students to receive refunds of up to 90% of the money they spent on courses.
Despite his previous denials of any wrongdoing, Trump's decision to settle the lawsuits marked a stunning reversal, allowing student victims to obtain restitution and holding those who commit fraud accountable, regardless of power or influence.
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The court rejected Simpson's request to opt out of the class-action lawsuit
In 2018, a $25 million settlement was finalized for students who claimed they were defrauded by Trump University. The settlement came after years of Donald Trump refusing to compensate the victims of his "sham university." Trump had denied the fraud claims and said he could have won at trial but didn't have the time due to his presidency.
Trump University was a now-defunct real estate seminar that operated from 2005 to 2010. It was not a licensed university, despite its name. The university promised to teach students the "secrets of success" in the real estate industry through expensive seminars and mentorship by real estate experts. However, students alleged that the university used false advertising and high-pressure sales techniques to lure them, resulting in the loss of thousands of dollars in tuition fees.
Among the Trump University attendees was Sherri Simpson, a Florida woman who spent roughly $19,000 on workshops. Simpson wanted to opt out of the class-action lawsuit and pursue a separate suit against Trump. However, the court rejected her request. The 9th Circuit Court of Appeals in San Francisco finalized the settlement, and former students became eligible for refunds of up to 90% of their expenses.
Simpson's case gained attention as she wanted to pursue individual legal action against Trump, believing that her experience warranted separate litigation. She argued that Trump University had made false promises and engaged in deceptive practices, causing financial harm. However, the court's decision to reject her request to opt out of the class-action lawsuit highlighted the strength of collective legal action in addressing shared grievances.
The rejection of Simpson's request set a precedent and reinforced the efficiency of class-action lawsuits in providing resolution for multiple parties with similar claims. By consolidating the legal process, the court streamlined the path to justice for all affected Trump University students, ensuring they received compensation without enduring lengthy individual trials.
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The settlement will see Trump pay $25 million to students who were defrauded by Trump University
A $25 million settlement has been reached in the case against Trump University, with former US President Donald Trump agreeing to pay the sum to settle several lawsuits. The lawsuits alleged that Trump University, a now-defunct real estate seminar, defrauded thousands of students who paid up to $35,000 to enrol. The students claimed that the university used false advertising and high-pressure sales techniques to lure them into expensive seminars, promising to teach them Trump's "'secrets to success' in the real estate industry.
The settlement, which was finalized by a federal judge in California, will see students recover about 80 to 90 percent of the costs they incurred while attending Trump University. This amounts to a refund of up to 90% of the money they spent on courses. The settlement is a significant reversal for Trump, who had previously refused to compensate the victims and denied the fraud allegations. Trump's attorneys had also sought to delay the trial until after his inauguration as President, but these requests were denied.
Despite the settlement, Trump University did not admit to any wrongdoing as part of the agreement. The settlement was reached just days before a class action lawsuit in California was set to go to trial, and it brought an end to a dispute that had followed Trump throughout his presidential campaign. The New York Attorney General, Eric Schneiderman, who first sued Trump in 2013, called the settlement a victory for the victims, stating that his office would continue to hold those accountable for fraud, regardless of their power or wealth.
It is worth noting that one Trump University attendee, Sherri Simpson, a Florida woman who spent roughly $19,000 on Trump University workshops, attempted to opt out of the class action suit. She wanted to pursue a separate lawsuit against Trump, but her request was rejected by the courts.
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Trump has denied any wrongdoing and said he settled due to a lack of time as President
Trump University, founded in 2004 or 2005, offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college. It was owned and operated by The Trump Organization.
In 2011, the company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, which resulted in a lawsuit filed in 2013. This was one of three lawsuits filed against Trump University from 2010 to 2013, with allegations including "deceptive practices" and defrauding students.
In 2016, Trump agreed to pay $25 million to settle these lawsuits, with $21 million going to the participants in the class actions, $3 million to New Yorkers not covered by the class actions, and a penalty of up to $1 million assessed by the state of New York for running an unlicensed university.
The settlement paved the way for thousands of former students to receive refunds of up to 90% of the money they spent on courses.
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The settlement was paid by Trump's Las Vegas business partner, billionaire Phil Ruffin
Trump University was a now-defunct real estate seminar that promised to teach attendees Donald Trump's "secrets to success" in the real estate industry. In 2018, a $25 million settlement was finalized to be paid to the attendees of the seminar, who had accused Trump University of false advertising and high-pressure sales techniques. While Trump himself paid for the settlement, the money used was, in part, from his business partner, billionaire Phil Ruffin.
Phil Ruffin is a longtime friend and business partner of Donald Trump. They first met at Trump Tower in the early 2000s when Ruffin was considering adding a Trump hotel to his Treasure Island casino. The idea did not come to fruition, but the two continued their partnership in other ventures. Ruffin and Trump co-own a Las Vegas hotel and casino, with Ruffin holding a half-interest in the development. In addition, Ruffin and Trump have a joint venture involving a portion of the New Frontier land in Las Vegas, where the Trump International Hotel and Tower was built.
In 2019, Ruffin revealed that he had made a payment to Trump for a hotel venture in the amount of $28 million in back fees. While Ruffin initially stated that the payment was made in 2018, the same year as the Trump University settlement, his spokeswoman later clarified that the payment was actually made in 2016, the year Trump was elected president. This timing has led to speculation that the payment from Ruffin may have been used to fund the settlement.
Ruffin has been implicated in other matters related to Trump, including providing a loan of his private jet for Trump's trip to Mexico City in 2016 and as a potential witness in the Trump-Russia investigation. Despite these connections, Ruffin has maintained that he does not have a personal relationship with Trump and that their interactions are solely business-related.
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Frequently asked questions
Trump University was an American company founded in 2004 by Donald Trump and his associates Michael Sexton and Jonathan Spitalny. It offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not a licensed university.
In 2016, Trump agreed to pay a $25 million settlement to settle three lawsuits alleging that Trump University defrauded its students. The settlement was reached after Trump's election win, despite his previous insistence that he would never settle.
Former students who claim they were defrauded are eligible for a refund of up to 90% of the money they spent on courses. Of the approximately 7,000 former students eligible to submit claims, more than 3,700 have submitted claims to receive payment through the settlement.
