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The art of the deal: Trump settles all outstanding Trump University fraud litigation

The president-elect will pay out $24 million to jilted students, $1 million in penalties

Donald Trump holding a media conference announcing the establishment of Trump University on May 23, 2005 in New York City (credit: Getty Images)
Donald Trump holding a media conference announcing the establishment of Trump University on May 23, 2005 in New York City (credit: Getty Images)

President-elect Donald Trump settled all outstanding Trump University fraud litigation today, ending years of unresolved legal disputes with former students.

CNBC first reported Friday morning that Trump was getting close to settlement agreements that would end three actions against him in New York and California. According to the terms of the agreements reached Friday afternoon, Trump will pay $21 million to former students in California, settling two class action lawsuits there.

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In New York, where Attorney General Eric Schneiderman brought a $40 million action against Trump University for running a “bait-and-switch scheme,” Trump will pay $3 million to former students not covered by the California settlements. He’ll also pay an additional $1 million in New York state penalties for running an unlicensed university.

Trump, however, will not admit any wrong doing as a part of the agreement.

“The victims of Trump University have waited years for today’s result,” Schneiderman said in a statement, “and I am pleased that their patience — and persistence — will be rewarded by this $25 million settlement.” [NY Daily News] — Will Parker

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