Court Clears Way For Trump University To Pay $25 Million To Victims Of Massive Fraud
A federal appeals court has rejected an appeal to stop the $25 million President Trump was ordered to pay to former students of his scam known as Trump University.
The $25 million settlement was challenged by Sherri Simpson, a former Trump University student who wanted to bring the fake university to court over $19,000 she paid to attend the fraudulent program.
The 9th Circuit Court of Appeals ruled against Simpson, a Florida bankruptcy lawyer, who argued that Trump University guaranteed students would be able to opt out of class action lawsuits. The court ruled that only one opportunity to opt out was promised.
Nearly 4,000 former Trump University students will now begin receiving payments that could offer up to 90% of what they originally paid to attend President Trump’s scam.
“I’m not surprised, but we are disappointed that there will never be a public trial on Trump University and that all of the lurid facts about the fraud won’t receive the public hearing they deserve,” attorney Gary Friedman told Politico.
“For years, President Trump refused to compensate the victims of his sham university. His reversal in 2016—and the large-scale settlement that resulted—opened the door for student victims to finally obtain the restitution they deserve,” New York Attorney General Eric Schneiderman said in a statement. “My office will continue to hold those who commit fraud accountable, no matter how rich or powerful they may be.”
Trump has continued to maintain his innocence in the scam despite a massive amount of information proving Trump University was a fraudulent business run by salespeople who touted their fake credentials as successful real estate experts.