President-elect Donald Trump agreed to settle his outstanding lawsuits related to Trump University on Friday afternoon for $25 million, the New York attorney general’s office said.
“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,” Attorney General Eric Schneiderman said in a statement. “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.”
Former students who paid $25,000 for real estate advice sued Trump for failing to deliver on their promised education.
“In 2013, my office sued Donald Trump for swindling thousands of innocent Americans out of millions of dollars through a scheme known as Trump University,” Schneiderman’s statement said. “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.”
Trump, who previously said he would not settle the lawsuit, mocked the presiding judge in the case in June for his Mexican heritage.
The settlement eases one potential legal burden for Trump as he prepares for the presidency. Under current law, sitting presidents can be sued while in office for acts that occurred before assuming the presidency.
Earlier this week, Trump’s lawyers tried to postpone a Nov. 28 court date related to the Trump University lawsuit, arguing he was too busy to appear in court.
UPDATE 5:20 PM: The Trump Organization issued a statement on the lawsuit.
“We are pleased to announce the complete resolution of all litigation involving Trump University. While we have no doubt that Trump University would have prevailed at trial based on the merits of this case, resolution of these matters allows President-elect Trump to devote his full attention to the important issues facing our great nation.”