Donald Trump agrees to pay $25 million to settle his university's lawsuits
Three complaints accused Trump University of fleecing students who had paid up to $35,000 a year to to learn about the businessman’s real estate secrets.
United States President-elect Donald Trump has averted going to trial by agreeing to pay $25 million (Rs 166 crore) to settle lawsuits against his Trump University. He had earlier said he would never settle the lawsuits. Three cases – two class-action lawsuits in California and a civil suit in New York – were filed against Trump University for fleecing students who paid up to $35,000 (Rs 23 lakh approximately) a year to enroll in courses to learn about the billionaire businessman’s real estate secrets.
According to the agreement, Trump will pay $21 million (Rs 139 crore) to settle the two California suits and $4 million (Rs 26 crore) to settle with the New York attorney general. However, the court still needs to approve the agreement. If approved by US District Judge Gonzalo Curiel, around 7,000 students will be eligible for refunds. The settlement does not require Trump to admit any wrongdoing on his part.
The complaints alleged that students were cheated of thousands of dollars in tuition fees through deceptive claims. Former Trump University employees have also alleged that the varsity used high-pressure sales tactics and hired unqualified instructors, reported The New York Times. “I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million (Rs 6 crore) in penalties to the State of New York for violating state education laws,” said New York Attorney Genral Eric T Schneiderman.
During his presidential campaign, however, Trump had promised to continue his fight. He said he was innocent and told supporters at a rally that he would visit San Diego to testify after winning the election. “I could have settled this case numerous times but I don’t want to settle cases when we’re right. I don’t believe in it,” he had said.
Trump’s stand on these lawsuits legal began to soften soon after his victory on November 8. Trump’s lead attorney Daniel Petrocelli called the settlement a sacrifice for the White House, reported Associated Press. “He was willing to sacrifice his personal interests, put this behind him, and move forward,” Petrocelli said.