President-elect Donald Trump has agreed to pay $25 million to settle the Trump University fraud case, the New York attorney general announced Friday.
Attorney General Eric Schneiderman called the settlement “a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university.”
Mr. Trump, who has previous boasted he would not settle the case, faced three lawsuits over the now-defunct university, including two class-action suits filed in California and one in New York. Former students who paid $35,000 for real estate “secrets” from his “handpicked” instructors brought the suits, alleging that Mr. Trump’s for-profit education venture failed to deliver the quality of education promised.
One of the cases had previously been headed toward a Nov. 28 trial, during which Mr. Trump could have potentially taken the witness stand just weeks before his inauguration as president.
“Donald Trump fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university,”
Mr. Schneiderman said in a statement issued Friday.
An attorney representing Mr. Trump could not be reached for comment Friday afternoon.
A statement issued by Mr. Schneiderman indicates that the former students will be paid restitution and $1 million in penalties will be paid to New York for violating state education laws.