For the latest business news and markets data, please visit CNN Business. The settlement was reached in November shortly after the election. It kept the president-elect from having to testify in a trial. Related: Trump Inc. Trump started Trump University, a for-profit series of seminars that told students they could get rich off real estate with the right investing techniques, in It was hit with fraud suits starting in and closed in Students said they were promised access to private financing options that never materialized, and concluded the program was effectively a bait-and-switch. Though initial seminars were free, attendees alleged that teachers only used them to get students to shell out for paid sessions. Unibersity University also advertised that Trump himself picked the instructors, but former students claimed that wasn’t true. Many ended up paying tens of thousands of dollars — and said they were a far cry from recouping the investment via real estate deals. They will have at least half their money refunded. We’re universitu longer maintaining this page. Personal Finance.
Morning Rundown: Trump impeachment trial begins, cases of a deadly coronavirus spike and Prince Harry arrives in Canada. Simpson had wanted to opt out of a class action suit in order to pursue a separate suit against Trump, but the court rejected that. Students had alleged that Trump University, which was open from to , used false advertising and high-pressure sales techniques to lure them to free investor workshops at which they were sold expensive seminars and told they would be mentored by real estate gurus, leading to the loss of thousands of dollars in tuition. They were folded into one class action suit after Trump was elected, according to court documents. His reversal in —and the large-scale settlement that resulted — opened the door for student victims to finally obtain the restitution they deserve,» he said. The court said in its ruling that plaintiffs are expected receive 80 percent to 90 percent of what they paid for Trump University programs. Trump, who has boasted about his real-estate and investing acumen, rebuffed the claims of fraud during his presidential campaign and vowed to fight them until the end. Impeachment Politics U. Sections U. Follow NBC News. Breaking News Emails Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings. Let our news meet your inbox. The news and stories that matters, delivered weekday mornings. Sign Up.
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Donald Trump speaks as Trump University president Michael Sexton looks on, during a May 23, , news conference announcing the establishment of the university in New York City. Donald Trump rarely misses an opportunity to brag about his wealth — except when it comes to Trump University. Both estimates are likely chump change for Trump. But the question about how much money Trump made from his eponymous university has become a critical one for two reasons: First, how much he profited could be a key factor in the lawsuits alleging Trump bilked student out of thousands of dollars for the get-rich-on-real-estate courses. And with Trump refusing to release his taxes, the vague response about his earnings from Trump University could add fuel to the accusations that Trump has something to hide by being evasive about his personal finances. Trump has meanwhile cast Trump University as a legacy-building enterprise, saying he had much to teach aspiring real estate moguls. But Trump has so far refused to release those documents. Sexton was a businessman, not a real estate mogul; he said in one deposition that his only experience with real estate transactions was buying his own home. Trump had a different idea: He would fund Trump University, and Sexton would have a stake in the company, Sexton said in the deposition.
It was owned and operated by The Trump Organization. After multiple lawsuits, it is now defunct. The company offered courses in real estate, asset management, entrepreneurship, and wealth creation. The organization was not an accredited university or college. It conducted three- and five-day seminars often labeled «retreats» and used high-pressure tactics to sell these to its customers. Trump University was also the subject of two class actions in federal court. The lawsuits centered around allegations that Trump University defrauded its students by using misleading marketing practices and engaging in aggressive sales tactics. The company and the lawsuits against it received renewed interest due to Trump’s candidacy in the presidential election. Michael Sexton created a business plan for a real estate training program and presented it to Donald Trump looking to pay Trump a flat fee for the use of his name. Trump instead decided he wanted to be the principal owner. The focus of the instruction was real estate investing, with Trump claiming in advertisements: «I can turn anyone into a successful real estate investor, including you. In an infomercial , Trump said he «hand-picked» Trump University’s instructors. He testified in a deposition , however, that he never selected the instructors for the program. The Trump Institute was a separate business. It was licensed by Trump University, and Donald Trump received a cut of every seat sold,  but Trump University did not own any part of it. Three lawsuits were filed asserting that Trump University engaged in a variety of illegal business practices, ranging from false claims to racketeering. Two were federal class actions: one against Trump University and its managers, including Donald Trump, and one against Donald Trump personally.
President-Elect Donald Trump to Settle Trump University Lawsuit
But the real news about the incoming administration was being made in court. Trump jow the settlement on Twitter as a victory. New York Atty. So the settlement comes to It is true, as Trump asserts, that the settlement was designed to put the Trump University case uniiversity. But the evidence assembled by Schneiderman and plaintiffs who brought two universitu lawsuits in California federal court painted a compelling picture. Schneiderman alleged that this was false. The playbook was heavily devoted to marketing the program, not teaching the particulars of the Trump Way. Another salesman completed the sale instead. As how much money did trump make with trump university candidate, Trump made Curiel, an Indiana-born jurist of Mexican descent, into a punching bag for his anti-immigrant campaign plank, claiming the judge had been unfair to him even though Curiel had been sedulously fair. As the Nov. He also pledged not to settle. Much more was at stake in the Trump University lawsuits than inconvenience. So this was no trivial threat, and the settlement not an effort merely to dodge a nuisance. The Trump University ohw cast a major shadow over his presidency. Keep up to date with Michael Hiltzik. About Us. Brand Publishing. Times News Platforms. Real Estate. Facebook Twitter Show more sharing options Share Close extra sharing options.