Trump University: Students' Lawsuit Against The Institution

Former students of Trump University sued the organisation, claiming they were scammed out of thousands of dollars. The for-profit education company, which was founded by former US President Donald Trump, offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, Trump University was not an accredited university or college. 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. Trump University was also the subject of two class actions in federal court, with students alleging that they were defrauded through misleading marketing practices and aggressive sales tactics. In total, three lawsuits were filed, asserting that Trump University engaged in false claims and racketeering. In November 2016, Trump settled all three lawsuits for a total of $25 million.

Students claimed they were tricked into spending tens of thousands of dollars on an infomercial

Students of Trump University claimed they were tricked into spending tens of thousands of dollars on an infomercial. The university, which was founded by Donald Trump in 2004 and launched in 2005, offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, Trump University 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.

The students who sued claimed that they were scammed and tricked into spending tens of thousands of dollars on what amounted to an infomercial. They alleged that they were led to believe that they would receive mentoring by Trump's hand-picked real estate experts, who would help them succeed in the real estate market. However, these experts had little expertise in real estate and offered perfunctory or non-existent advice.

The students also claimed that Trump University engaged in misleading marketing practices and aggressive sales tactics. For example, the university advertised that students would be taught by Trump's hand-picked instructors, but in a 2012 deposition, Trump testified that he never selected the instructors. The university also claimed that students gave the program 98% favorable reviews, but former students alleged that they were pressured to give positive feedback and told that it was necessary to obtain graduation certificates.

In addition to the lawsuits filed by students, Trump University was also the subject of a $40 million civil suit filed by the State of New York in 2013, alleging illegal business practices and false claims. The New York Attorney General described Trump University as a bait-and-switch scheme that misled over 5,000 people to pay up to $35,000 to learn Trump's real estate investment techniques.

In November 2016, Trump settled all three lawsuits for a total of $25 million, agreeing to reimburse students for up to 90% of the money they spent on courses.

Trump University was not an accredited university or college despite its name

Despite its name, 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 owned and operated by The Trump Organization and was founded by Donald Trump, Michael Sexton, and Jonathan Spitalny.

Trump University offered courses in real estate, asset management, entrepreneurship, and wealth creation. The courses were conducted as three- and five-day seminars, often called "retreats," and used high-pressure tactics to sell them to customers. The seminars were not licensed as a college, and the operation did not confer college credit, grant degrees, or grade its students.

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 they were not chartered as one and did not have the required license to offer live instruction or training. Despite this warning, the organization continued to instruct students in New York State.

As a result of these issues, Trump University faced 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 August 2013. The lawsuits centered on allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

In total, three lawsuits were filed against Trump University, asserting various illegal business practices, including false claims and racketeering. Two were federal class actions, and one was filed in New York State court. The lawsuits resulted in a $25 million settlement against Trump, with thousands of former students receiving most of their money back.

The company used high-pressure sales tactics to sell seminars to customers

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, who was U.S. president from 2017 to 2021 and elected again in 2024.

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 sales tactics to sell them to its customers. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation, charging high prices for seminars and programs.

The company's high-pressure sales tactics were a key part of its business model. During introductory seminars, customers were urged to sign up for additional classes, ranging from $1,495 seminars to a $35,000 "Gold Elite" program. In some cases, customers were encouraged to max out their credit cards and even push them to call their credit card companies to ask for a credit limit increase. These tactics preyed on vulnerable individuals, implying that the school offered a fast track to financial security.

The use of high-pressure sales tactics was not limited to the initial sales process but also extended to the promotion of additional classes and programs. This is evident in the testimony of former student Bob Guillo, who took out nearly $35,000 from his retirement account to pay for the program. Guillo's experience was not unique, as corroborated by former employees who stated that the focus was more on making sales than providing quality educational services.

The company's use of high-pressure sales tactics attracted significant criticism and legal scrutiny. In 2011, the company became the subject of an inquiry by the New York Attorney General's office for illegal business practices, and multiple lawsuits were filed by former students alleging that they were misled and scammed by the company's aggressive sales tactics.

As a result of the lawsuits and negative publicity, Trump University ceased operations in 2010, and in 2016, Trump settled all three lawsuits for a total of $25 million, despite repeatedly insisting he would not settle. The settlement included restitution for former students and fines for the company.

Trump University was sued for false claims and racketeering

Trump University, an American company that ran a real estate training program from 2005 to 2010, was sued for false claims and racketeering. 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. The lawsuits centered on allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics.

Trump University was also the subject of two class actions in federal court. Three lawsuits were filed, asserting that the organization engaged in a variety of illegal business practices, ranging from false claims to racketeering. Two were federal class actions: one against Trump University and its managers, including Trump, and one against Trump personally. A third case was filed in New York State court.

In the lawsuits, former Trump University students alleged that Trump committed fraud when he promised to use "hand-picked" instructors to teach success in real estate through a program that cost up to $35,000. 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.

In November 2016, Trump settled all three lawsuits for a total of $25 million. 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 was held up by one victim who wanted to pursue their own lawsuit

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 and founded by Donald Trump, who was U.S. president from 2017 to 2021 and elected again in 2024. Despite its name, the organization was not an accredited university or college. It offered courses in real estate, asset management, entrepreneurship, and wealth creation.

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

In November 2016, Trump settled all three lawsuits for a total of $25 million. However, the settlement was held up for over a year by one victim, Sherri Simpson, who wanted to pursue her own lawsuit. Simpson was a former Trump University student who challenged the agreement, saying she wanted to file her own lawsuit in hopes of recouping more money and receiving an apology from Trump. She argued that she should be able to opt out of the class-action suit and pursue her own case. However, a federal appeals court rejected her challenge, ruling that she did not have the right to opt out under the terms of the class-action suit. Simpson eventually agreed to drop her appeals, allowing the settlement to be finalized.

As a result of the settlement, about 8,000 former students were eligible to receive 80 to 90 percent of what they paid for Trump University programs. This included $21 million in two lawsuits filed in California and $4 million in a case filed in 2013 by New York Attorney General Eric Schneiderman. Schneiderman welcomed the finalization of the settlement, stating that it ensured victims of Trump's fraudulent university would receive the relief they deserved.

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