U.S. President-elect Donald Trump has agreed to pay $25 million plus fines to settle three fraud lawsuits against Trump University, a reversal from his previous stance in which he said he would fight the allegations in court. (more)
Under the terms of the settlement reached on Friday, Trump will pay a total of $25 million in restitution, which means all of the 6,000 people who sued will receive a payment. Trump will also pay up to $1 million in penalties to the State of New York for violating state education laws.
"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," New York Attorney General Eric Schneiderman said in a statement.
"Today, that all changes. 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," Schneiderman added. "The victims of Trump University have waited years for today's result and I am pleased that their patience - and persistence - will be rewarded."
There was no immediate comment from Trump regarding Friday's settlement, but during the presidential campaign he had said repeatedly that he would never settle. "I could have settled but won't out of principle!", he wrote on Twitter in late February.
At one point during the presidential campaign, Trump was widely criticized for his comments about the federal judge who oversaw the lawsuits against Trump University, claiming that the judge was biased against him because of his Mexican heritage.
A federal judge has approved a $25 million settlement to resolve three fraud lawsuits against the now-defunct Trump University, ending nearly seven years of legal battles with former students who claim they were misled. (more) Read More