Lori Meadows
Trump University was a venture owned and operated by The Trump Organization that offered courses in real estate, asset management, entrepreneurship, and wealth creation. Despite its name, the organization was not an accredited university or college. It offered three- and five-day seminars, often called retreats, and used high-pressure tactics to sell them to its customers. 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. Two federal class-action lawsuits were filed against Trump University and its managers, including Trump, and one against Trump personally. In this article, we will explore the lawsuits filed by former students of Trump University and the outcome of these legal proceedings.
| Characteristics | Values |
|---|---|
| Year Trump University ceased operations | 2011 |
| Reason for ceasing operations | Multiple investigations, lawsuits, and student complaints |
| Number of tickets sold to customers | 7,611 |
| Number of tickets sold for a $1,500 3-day course | 6,000 |
| Number of tickets sold for silver, gold, or elite mentored courses | 1,000 |
| Price range of silver, gold, or elite mentored courses | $10,000 - $35,000 |
| Number of federal class actions | 2 |
| Number of cases filed in New York State Court | 1 |
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What You'll Learn
Students pressured to give positive reviews
Trump University was a private venture owned and operated by The Trump Organization. It offered courses in real estate, asset management, entrepreneurship, and wealth creation. The university was not an accredited college or university and did not confer degrees or grades. However, it used high-pressure sales tactics to sell its seminars and courses, which were priced between $1,495 and $35,000.
Despite Trump's claim that students gave the program 98% favorable reviews, former students alleged that they were pressured by employees to give positive reviews. They were told that they had to fill out the forms to obtain their certificates of completion. In addition, "playbooks" documenting instructions for employees to use a hard-sell approach were discovered, as well as depositions from former employees stating that Trump University had defrauded or lied to its students.
Trump University became the subject of multiple investigations, lawsuits, and student complaints in 2011. A separate organization, the Trump Institute, was licensed by Trump University but not owned by The Trump Organization. The New York State Department of Education sent a letter to Trump University in 2005, stating that using the word "university" was misleading and violated state law as they were not chartered as a university and did not have the required licenses.
Trump responded to the allegations during the 2016 Republican presidential primaries, stating that Trump University was a small business and that lawsuits were a routine part of business. He claimed that student evaluations were overwhelmingly positive and that he wins most of the lawsuits. However, Trump's opponents criticized him for the controversies surrounding Trump University, with Mitt Romney calling him a "phony" and a "fraud".
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Trump University was a small business
Trump University was not an accredited college or university and did not confer degrees or college credits. It offered introductory seminars, typically held in rented hotel ballrooms, where students were urged to sign up for additional classes. These classes ranged from $1,495 seminars to a $35,000 "Gold Elite" program. Records indicate that 7,611 tickets were sold to customers, with about 6,000 of these for a $1,500 3-day course.
Despite Trump's claims of 98% favorable reviews, the organization faced multiple investigations, lawsuits, and student complaints. In 2011, the New York Attorney General's office investigated illegal business practices, and a lawsuit was filed in 2013. The operation employed high-pressure sales tactics, preying on vulnerable populations and implying that the courses offered a fast track to financial security.
Trump University was the subject of two federal class-action lawsuits, one against the organization and its managers, including Trump, and one against Trump personally. A third case was filed in New York State court. During the 2016 Republican presidential primaries, Trump's opponents criticized him for the controversies surrounding Trump University. Despite this, Trump maintained that lawsuits were routine and that he wins most of them.
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Lawsuits were routine, Trump won most
Trump University was a private venture owned and operated by The Trump Organization. It offered courses in real estate, asset management, entrepreneurship, and wealth creation. Its real estate training program ran from 2005 to 2010, and it ceased operations in 2011 amid multiple investigations, lawsuits, and student complaints.
Trump University was criticized for its high-pressure sales tactics and misleading marketing. It was not an accredited university or college and did not confer degrees or grades. Despite this, it used the word "university" in its branding and charged students for additional classes, with prices ranging from $1,495 to $35,000.
During the 2016 Republican presidential primaries, Trump's opponents brought up Trump University to criticize him. Trump responded that lawsuits were routine in business and that he wins most of them. He also claimed that Trump University had a 98% positive review rating from students, although former students alleged they were pressured to give favorable reviews.
Trump University was the subject of multiple lawsuits, including two federal class actions and a case filed in New York State court. In 2005, the New York State Department of Education sent a letter to Trump University stating that using the word "university" was misleading and violated state law. Despite a promise to stop instructing students in New York, the New York Attorney General's office alleged that the instruction continued, leading to a lawsuit filed in 2013.
While Trump claimed victory in most lawsuits, the public release of certain documents in 2016 revealed playbooks instructing employees to use hard-sell approaches and depositions from former employees stating that Trump University had defrauded or lied to its students.
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Illegal business practices, per New York Attorney General
In 2011, Trump University became the subject of an inquiry by the New York Attorney General's office for illegal business practices, which resulted in a lawsuit being filed in August 2013. The New York State Department of Education had sent Trump University a letter in 2005 stating that they were violating state law by using the word "university" when Trump University was not chartered as one and did not have the required license to offer live instruction or training. Despite this, instruction continued, as alleged by the New York Attorney General.
Trump University was owned and operated by The Trump Organization and offered courses in real estate, asset management, entrepreneurship, and wealth creation. Its real estate training program ran from 2005 to 2010. It was not an accredited university or college and did not confer college credit, grant degrees, or grade its students.
The university conducted three- and five-day seminars, often called "retreats", in rented spaces such as hotel ballrooms. At the introductory seminar, 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 of the 7,611 tickets sold were for a $1,500 3-day course, with 1,000 tickets for the more expensive silver, gold, or elite mentored courses.
Trump University used high-pressure tactics to sell these seminars to its customers, employing many of the same tactics as predatory colleges. These included preying on vulnerable populations, implying that the school offered a fast track to financial security, and creating the impression that the recruiter is a friendly advisor. While Trump claimed that students gave the program 98% favorable reviews, former students alleged that they were pressured to give positive feedback.
The inquiry by the New York Attorney General's office into Trump University's illegal business practices resulted in a lawsuit being filed in 2013. This was one of several lawsuits that Trump University faced, including federal class actions and a case filed in New York State court.
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Students defrauded and lied to
Trump University was a private venture owned and operated by The Trump Organization. It was not an accredited college or university, and it did not offer college credits or degrees. The "university" offered courses in real estate, asset management, entrepreneurship, and wealth creation.
In 2011, the company became the subject of multiple investigations and student complaints, which resulted in a lawsuit filed in 2013. The lawsuit alleged that Trump University had defrauded and lied to its students. Former employees testified that the university used high-pressure sales tactics to prey on vulnerable populations, implying that the courses offered a fast track to financial security. Students were urged to sign up for additional classes ranging from $1,495 to $35,000, with about 6,000 students purchasing a $1,500 3-day course.
Despite Trump's claims that students gave the program 98% favorable reviews, some former students alleged that they were pressured to give positive feedback. In 2005, the New York State Department of Education sent a letter to Trump University stating that using the word "university" was misleading and violated state law as they were not chartered as a university and did not have the required licenses.
Trump University ceased operations in 2011 amid the multiple investigations and lawsuits. The allegations surrounding Trump University were used against Trump during the 2016 Republican presidential primaries by his opponents, who criticized him for being a "phony" and a "fraud."
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Frequently asked questions
It is unclear exactly how many students of Trump University are suing, but there have been multiple lawsuits and student complaints. Two federal class actions were filed, one against Trump University and its managers, and one against Trump himself.
The lawsuits were regarding illegal business practices, with former employees stating that Trump University had defrauded or lied to its students. Trump University also faced criticism for its use of the word "university" when it was not chartered as one and did not have the required license to offer live instruction or training.
The outcomes of the lawsuits are unclear, however, Trump commented that he could settle the lawsuits if he wanted to, but he does not want to "out of principle".
