Tuesday, November 22, 2016

President-Elect Admits No Wrongdoing, But Agrees To Cough Up $25 Million Anyway To Buy His Way Out Of Lawsuits Accusing Him Of Peddling Worthless Trump University Real Estate Investment Seminars, Fleecing Students For As Much As $35K Per Victim

The New York Times reports:
  • Donald J. Trump has reversed course and agreed on Friday to pay $25 million to settle a series of lawsuits stemming from his defunct for-profit education venture, Trump University, finally putting to rest fraud allegations by former students, which have dogged him for years and hampered his presidential campaign.

    The settlement was announced by the New York attorney general just 10 days before one of the cases, a federal class-action lawsuit in San Diego, was set to be heard by a jury. The deal averts a potentially embarrassing and highly unusual predicament: a president-elect on trial, and possibly even taking the stand in his own defense, while scrambling to build his incoming administration.

    It was a remarkable concession from a real estate mogul who derides legal settlements and has mocked fellow businessmen who agree to them.

    But the allegations in the case were highly unpleasant for Mr. Trump: Students paid up to $35,000 in tuition for a programs that, according to the testimony of former Trump University employees, used high-pressure sales tactics and employed unqualified instructors.

    The agreement wraps together the outstanding Trump University litigation, including two federal class-action cases in San Diego, and a separate lawsuit by Eric T. Schneiderman, the New York attorney general. The complaints alleged that students were cheated out of thousands of dollars in tuition through deceptive claims about what they would learn and high-pressure sales tactics.

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