World - - Nov 22,2016
Newly elected US President Donald Trump has agreed on a $25 million settlement to resolve three lawsuits filed against Trump University.
New York State Attorney General Eric Schneiderman announced this deal which would settle the lawsuit that he filed three years ago, along with two class-action lawsuits filed by former Trump University students. He termed this major victory as a ‘stunning reversal’ by Donald Trump who had repeatedly said that he won’t settle the class-action lawsuits. Eric also said that he is ‘pleased’ with the patience of the victims and with the outcome in their favor.
The lawsuits alleged that Trump University had promised to teach programs on being successful in real estate that cost up to $35000, which it failed to deliver.
During the campaigns, Trump had strongly denied the allegations and said that he wouldn’t settle. However, the deal does not require him to acknowledge wrongdoing. The amount has to be paid by Trump or one of his business entities and it includes a compensation for the victims in addition to a $1 million penalty to the state.
A trial in one of the three lawsuits was scheduled to be on November 28 in San Diego. Trump’s lawyers had tried to delay the case and then in a surprising move, Trump decided to settle all the three lawsuits.
Eric had termed Donald Trump ‘a fraud’ and had sought a payout of $40 million over the University, which was closed down in 2010. The District Court had repetitively urged the two sides to settle outside of court.
This costly settlement may have saved him from a potentially embarrassing trial that he was trying to avoid, but it could backfire as there are a dozen other lawsuits against Trump. Also, Trump had continuously said that he has no doubt about winning this case and now plaintiffs may get a hint that he wants to resolve the court cases before starting his term as president.