The man who said settling is for losers just settled – big league, settled. Faced with the prospect that the Mexican-American Judge Gonzalo Curiel he labeled as biased would not postpone discovery in the case, leading to the embarrassing position of having to testify about pervasive fraud while running the country, Trump agreed to pay a whopping $25 Million to resolve three lawsuits brought by ex-students.
Many times businesses and high-profile target s settle lawsuits by making a nuisance payment to get the case out of the limelight and not tie them up in embarrassing or frivolous litigation. This is not that. NY State Attorney General Eric Schneiderman had sued for a total of $40 Million, so paying $25 Million against that is hardly nuisance value. The BBC reports that Attorney General Eric Schneiderman said in a statement:
“Today’s $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university.
The victims of Trump University have waited years for today’s result and I am pleased that their patience – and persistence – will be rewarded by this $25 million settlement.”
The students had paid a whopping $35,000 to Trump University for what they believed were hand-picked secrets from experts Trump himself. The closest students actually ever got to the real estate mogul was having their photo taken beside a cardboard cutout of him, Mr Schneiderman has alleged. The NY AG also said that Mr Trump personally pocketed about $5m in the “scheme.” Trump also supposedly never had any dealing with the instructors who were billed as personal proteges of the next US President.
The Trump settlement includes no admission of wrongdoing as most out-of-court settlements do. But Schneiderman made no bones about making it clear he believed Trump U to be no more than a glorified snake oil scam. “More than 5,000 people across the country who paid Donald Trump $40 million to teach them his hard-sell tactics got a hard lesson in bait-and-switch,” Schneiderman said in a statement at the time. “Mr. Trump used his celebrity status and personally appeared in commercials making false promises to convince people to spend tens of thousands of dollars they couldn’t afford for lessons they never got.”