Trump University: Who Got Their Money Back?

Former students of Trump University, an American company that ran a real estate training program from 2005 to 2010, will get most of their money back after a federal appeals court upheld a $25 million settlement against Donald Trump. The settlement resolved lawsuits filed in New York and California that claimed the organisation, which was not a registered university, failed to deliver on promises to teach people how to get rich quickly in the real estate business.

Students paid up to $35,000 for Trump University courses

Students paid up to $35,000 for courses at Trump University, an American company that ran a real estate training program from 2005 to 2010. The company was owned and operated by The Trump Organization and founded by Donald Trump, who was US president from 2017 to 2021 and was re-elected in 2024. Despite its name, Trump University was not an accredited university or college. It did not confer college credit, grant degrees, or grade its students.

The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Its original business plan focused on online education, but it quickly expanded to include live, in-person instruction. The instruction primarily focused on real estate investing, with Trump claiming in advertisements, "I can turn anyone into a successful real estate investor, including you."

The courses typically began with free introductory seminars, during which students were urged to sign up for additional classes, ranging from $1,495 seminars to a $35,000 "Gold Elite" program. Records indicate that about 6,000 students purchased a $1,500 3-day course, and 1,000 students signed up for silver, gold, or elite mentored courses ranging from $10,000 to $35,000.

In 2011, Trump University ceased operations amid multiple investigations, lawsuits, and student complaints. The company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, resulting in a lawsuit filed in August 2013. Trump University was also the subject of two class-action lawsuits in federal court, alleging that the company defrauded its students through misleading marketing practices and aggressive sales tactics.

In November 2016, Trump settled all three lawsuits for a total of $25 million. The settlement specified that Trump did not admit any wrongdoing. Former students covered by the settlement agreement could receive a refund of up to 90% of the money they spent on courses.

The $25 million settlement will see students reimbursed for up to 90% of course costs

The $25 million settlement against Trump University will see former students reimbursed for up to 90% of the costs of their courses. The settlement resolves lawsuits filed in New York and California that claimed the so-called university – which was not a registered university but a program of seminars – failed to deliver on promises to teach people how to get rich quickly in the real estate business.

Many students paid out $35,000 for lessons from so-called experts "hand-picked" by Trump, who appeared in adverts boasting that clients would make a million dollars in a year. Many never made any profits and struggled under debt after maxing out their credit cards during persuasive sales talks to pay for courses.

Trump University was an American company that ran a real estate training program from 2005 to 2010. It was owned and operated by The Trump Organization. Despite its name, the organization was not an accredited university or college. It conducted three- and five-day seminars (often called "retreats") and used high-pressure tactics to sell them to its customers. It did not confer college credit, grant degrees, or grade its students.

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 August 2013. An article in the National Review called the organization a "massive scam".

Trump University was also the subject of two class actions in federal court. The lawsuits centered around allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

In November 2015, a district court ruled on Trump's motion for summary judgment, finding that there was a genuine issue of fact on the plaintiffs' claims of deceptive practices and misrepresentation in advertisements. This allowed the case to proceed to trial.

In May 2016, the trial date was set for November 28, 2016, after the U.S. presidential election. In August 2016, the district court denied Trump's motion for summary judgment, ruling that there was sufficient evidence against Trump for the case to go to a jury.

On November 18, 2016, it was reported that Trump had agreed to pay $25 million to settle the two class actions and the New York suit. The settlement was reached 10 days before the San Diego class action was scheduled to go to trial. $21 million went 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 was assessed by the state of New York for running an unlicensed university.

The settlement also specified that Trump, who had previously said he would never settle, did not admit any wrongdoing.

Trump University was not a licensed university

Trump University was not an accredited university or college. It was an American company that ran a real estate training program from 2005 to 2010. The company was founded in 2004 by Donald Trump, Michael Sexton, and Jonathan Spitalny, and was owned and operated by The Trump Organization.

Despite its name, Trump University did not confer college credit, grant degrees, or grade its students. It conducted three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to its customers.

In 2005, the New York State Department of Education sent a letter to Trump, Sexton, and Trump University stating that they were violating state law by using the word "university" when it was not chartered as one and did not have the required license to offer live instruction or training. While Sexton promised that the organization would stop instructing students in New York State, the New York Attorney General alleged that such instruction continued.

In June 2010, Trump University changed its name to "The Trump Entrepreneur Initiative." It ceased most of its operations in 2010 and shut down in 2011 amid multiple investigations, lawsuits, and student complaints.

Trump University was the subject of several lawsuits, including two class actions in federal court and a $40 million civil suit by the State of New York, alleging illegal business practices and false claims. In November 2016, Trump settled all three lawsuits for a total of $25 million. The settlement included a penalty of up to $1 million assessed by the state of New York for running an unlicensed university.

Trump University was sued for false advertising and misleading marketing

The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. It conducted three- and five-day seminars, often called "retreats", and used high-pressure tactics to sell them to its customers. The instruction typically began with an introductory seminar in rented space, such as a hotel ballroom, where students were urged to sign up for additional classes, ranging from $1,495 seminars to a $35,000 "Gold Elite" program.

Many students paid $35,000 for lessons from so-called experts "hand-picked" by Trump, who appeared in adverts boasting that clients would make a million dollars in a year. However, many never made any profits and struggled under debt after maxing out their credit cards during persuasive sales talks to pay for courses.

Trump University was the subject of two class actions in federal court, as well as a lawsuit filed by the New York Attorney General's office in 2013. The lawsuits centred around allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

In 2016, Trump settled all three lawsuits for a total of $25 million. The settlement specified that Trump did not admit any wrongdoing. Former students were able to receive a refund of up to 90% of the money they spent on courses.

Trump University operated from 2005 to 2010

Trump University, also known as the Trump Wealth Institute and Trump Entrepreneur Initiative LLC, was an American company that ran a real estate training program from 2005 to 2010. It was owned and operated by The Trump Organization and founded by Donald Trump, Michael Sexton, and Jonathan Spitalny. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, it was not an accredited university or college, and it did not confer college credit, grant degrees, or grade its students.

Trump University conducted three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to customers. The instruction primarily focused on real estate investing, with Trump claiming in advertisements that he could "turn anyone into a successful real estate investor." The introductory seminar urged students to sign up for additional classes, ranging from $1,495 seminars to a $35,000 "Gold Elite" program. Records indicate that about 6,000 tickets were sold for a $1,500 3-day course, and 1,000 for silver, gold, or elite mentored courses ranging from $10,000 to $35,000.

Trump University was the subject of multiple investigations, lawsuits, and student complaints. In 2011, the company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, and a lawsuit was filed in 2013. The lawsuits centered on allegations that Trump University defrauded its students through misleading marketing practices and aggressive sales tactics.

In 2016, Trump settled all three lawsuits for a total of $25 million after being elected president. The settlement specified that Trump did not admit any wrongdoing. Former students were eligible for a refund of up to 90% of the money they spent on courses.

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