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Trump May Still Face Claims in Court Over Trump U

Trump University

[DIGEST: New York Times, Politico]

Days after Donald Trump won the election in November, he reached a $25 million agreement to settle fraud claims against his failed for-profit Trump University. At the time, he tweeted “The ONLY bad thing about winning the Presidency is that I did not have time to go through a long but winning trial on Trump U. Too bad!”

Luckily for Trump, he may just get that day in court yet.

Earlier this month, lawyers for former Trump University student Sherri Simpson asked a federal judge in San Diego to reject the settlement agreement unless former students are given the opportunity to leave the class action and sue Trump individually.

The settlement arose out of several suits filed for fraud against Trump University. Former students alleged that they were pushed to pay up to $35,000 to attend real estate courses at the University, which were taught by unqualified instructors. Under the terms of the settlement, members of the class would get a refund of up to 50 cents on the dollar of what they paid to attend Trump University. They could object to the terms of the agreement, but they did not have the right to “opt out” or leave the class.

The last time members were given the opportunity to opt out was in November of 2015. At that time, “the case was barreling toward trial, by all accounts,” wrote Simpson’s lawyer, Gary B. Friedman, in his objection. Plaintiffs like Simpson assumed they would have another opportunity to opt out of the class.

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  • Ali Wilkinson is a lawyer and writer living in Portland, Oregon. Her writing has appeared in the Huffington Post, Elephant Journal and Scary Mommy, among others. She blogs at Run, Knit, Love.

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