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Trump to finally pay out £18m settlement to former students of 'fake university' after judge approves claims

Compensation to provide 'significant and immediate' relief to thousands of customers

Tom Embury-Dennis
Tuesday 10 April 2018 03:45 EDT
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Donald Trump repeatedly insisted he would not settle the lawsuits
Donald Trump repeatedly insisted he would not settle the lawsuits (Getty)

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Donald Trump will finally pay out a $25 million (£20m) settlement to students after a judge signed off on claims against his fake university.

Judge Gonzalo Curiel, of the Southern District of California, declared the settlement “final” after an appeals court rejected arguments from a former student who wanted to pursue a separate lawsuit against the now defunct Trump University.

Sherri Simpson of Fort Lauderdale, Florida, who decided not the challenge the 9th US Circuit Court of Appeals’ decision, said she gave about $19,000 (£13,400) to the company.

"This process has taken long enough," Ms Simpson's lawyer Gary Friedman said in an interview on Monday. "We took our best shot, the 9th Circuit ruled against us, and we want the money to go out to everyone as quickly as possible."

New York attorney general Eric Schneiderman, who sued Mr Trump over the university, welcomed the settlement.

"Victims of Donald Trump's fraudulent university will finally receive the relief they deserve," he said, adding it was "an even higher settlement than anyone originally anticipated".

Sarah Sanders: Trump is 'the best negotiator'

When initially granting final approval in March 2017, Judge Curiel said the settlement provided "significant and immediate" relief to thousands of students, who could potentially recoup more than 90 cents on the dollar.

The suits alleged Trump University failed to deliver on its promise to teach success in real estate through programmes that cost up to $35,000 (£25,000). They said the programme misled students by calling itself a university when it was not an accredited school and by saying Mr Trump “hand-picked” instructors.

Despite repeatedly insisting he would not settle, Mr Trump agreed to pay out the $25m shortly after he won the 2016 presidential election in November 2016.

“I could have settled this case numerous times, but I don’t want to settle cases when we’re right,” he told supporters two years ago. “I don’t believe in it. And when you start settling cases, you know what happens? Everybody sues you because you get known as a settler.”

“One thing about me, I am not known as a settler.”

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