NEW YORK: AG Formally Announces Trump’s Surrender In Trump U Lawsuits, $25M Settlement For Scam

The New York Times reports:

Donald J. Trump has reversed course and agreed to pay $25 million to settle a series of lawsuits stemming from his defunct for-profit education venture, Trump University, finally putting to rest fraud allegations by former students, which have dogged him for years and hampered his presidential campaign.

The settlement was announced by the New York attorney general on Friday, just 10 days before one of the cases, a federal class-action lawsuit in San Diego, was set to be heard by a jury. The deal, if approved, averts a potentially embarrassing and highly unusual predicament: a president-elect on trial, and possibly even taking the stand in his own defense, while scrambling to build his incoming administration.

The agreement wraps together the outstanding Trump University litigation, including two federal class-action cases in San Diego, and a separate lawsuit by Eric T. Schneiderman, the New York attorney general. The complaints alleged that students were cheated out of thousands of dollars in tuition through deceptive claims about what they would learn and high-pressure sales tactics.

“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,” Mr. Schneiderman said in a statement. “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.”

I just had a great victory against lightweight A.G. Eric Schneiderman. Most of his case re Trump U. was thrown out or gutted. Little remains

— Donald J. Trump (@realDonaldTrump) October 16, 2014