Donald Trump Settles University Lawsuit for $25 Million

SAN DIEGO -- Hours before a hearing on the issue was scheduled to take place in San Diego, President-elect Donald J. Trump has settled a series of class-action lawsuit filed by disgruntled clients of his now-defunct real estate training program Trump University.

Under the settlement, Trump is expected to pay $25 million, but not admit any wrongdoing. The settlement comes just eight weeks before Trump's Jan. 20, 2017 inauguration as the 45th President of the United States.

New York Attorney General Eric T. Schneiderman, who in 2013 filed a lawsuit against Trump over the issue, released a statement on the $25 million settlement agreement on Nov. 18.

"In 2013, my office sued Donald Trump for swindling thousands of innocent Americans out of millions of dollars through a scheme known at Trump University. 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. Today, that all changes," the statement reads.

"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 said. "I am pleased that under the terms of this settlement, every victim will receive restitution and that Donald Trump will pay up to $1 million in penalties to the State of New York for violating state education laws. The victims of Trump University have waited years for today's result and I am pleased that their patience--and persistence--will be rewarded by this $25 million settlement."

Former Trump University students had claimed Trump committed fraud when he promised to use "hand-picked'' instructors to teach success in real estate through program that cost up to $35,000.

Plaintiffs claim that Trump misled them by calling Trump University a "university,'' when it wasn't an accredited school.

Jason Forge, one of the lead attorneys for the plaintiffs, told U.S. District Judge Gonzalo Curiel that $21 million of the $25 million settlement would stay in San Diego to reimburse former Trump University students in two cases. The remaining $4 million will go to the New York attorney general to pay back plaintiffs in the case there.

City News Service contributed to this story/Image via Shutterstock