US election: Donald Trump to settle university fraud case for $34m
Updated
US President-elect Donald Trump has agreed to a $34 million settlement to resolve three lawsuits over Trump University, his former school for real estate investors.
Key points:
- Trump University offered programs for real estate investors costing up to $38,000
- The $34m settlement includes restitution for victims and about $1.3m in state penalties
- Mr Trump previously said he would never settle, called the suits an "easy win"
The deal, announced by New York State Attorney-General Eric Schneiderman, will settle a lawsuit he filed three years ago, plus two class-actions filed in California on behalf of former Trump University students.
"Today's [$34 million] settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university," Mr Schneiderman said in a statement.
"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."
Mr Schneiderman said the $34 million to be paid by Mr Trump or one of his business entities included restitution for victims and more than $1.3 million in penalties to the state.
The suits alleged that Trump University failed to deliver on its promise to teach success in real estate through programs that cost about $38,000.
They said the program misled students by calling itself a university when it was not an accredited school and by saying that Mr Trump "hand-picked" instructors.
Attorneys for Mr Trump, who has denied any wrongdoing, said the settlement allowed the President-elect to focus his full attention on his transition to the White House.
"He was willing to sacrifice his personal interests, put this behind him, and move forward," Mr Trump's attorney Daniel Petrocelli said.
Alan Garten, the Trump Organisation's general counsel, said he had "no doubt" Mr Trump would have prevailed at trial.
During the campaign, Mr Trump strongly denied the allegations and said he would not settle.
He told supporters at a May rally that he would come to San Diego to testify after winning the presidency.
"I could have settled this case numerous times, but I don't want to settle cases when we're right," Mr Trump said at the time.
"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."
Plaintiff attorney Daniel Forge said an agreement was struck an hour before the case was due to be heard before US District Judge Gonzalo Curiel.
"We were at each other's throat for six-plus years and were able to find the common ground with them and do something good there," Mr Forge said.
ABC/wires
Topics: laws, law-crime-and-justice, us-elections, government-and-politics, world-politics, united-states
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