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Trump settles Trump University lawsuits for $25m | |
(about 2 hours later) | |
Donald Trump has settled three Trump University lawsuits for $25m (£20m), the New York Attorney General has said. | |
The US president-elect was being sued by former students who paid $35,000 (£28,000) for real estate "secrets" from his "hand-picked" instructors. | |
Mr Trump had repeatedly said he would not settle the class-action lawsuits. | |
Attorney General Eric Schneiderman said the settlement was a "stunning reversal" by Mr Trump and a "major victory" for victims. | |
The businessman faced three fraud lawsuits in California and New York. | |
A trial in one of the cases had been due to begin in San Diego on 28 November, although Mr Trump's lawyers had attempted to delay the case. | |
During the election campaign, Mr Trump was criticised for saying that the California judge hearing the case could not be impartial because he is of Mexican heritage. | |
Attorney General Eric Schneiderman said in a statement: "Today's $25 million [£20m] settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university. | |
"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." | |
Mr Schneiderman, who Mr Trump has attacked as a "lightweight", had sought a $40m (£32m) payout from Mr Trump over the university, which closed in 2010. | |
He called Trump University a "fraud from beginning to end" in July, adding that the organisation used "false promises to prey on desperate people". | |
US District Judge Gonzalo Curiel, who is presiding over the two California cases, had been urging both sides to settle out of court. | |
Mr Trump repeatedly claimed during his campaign that he would not settle the class-action lawsuits. | Mr Trump repeatedly claimed during his campaign that he would not settle the class-action lawsuits. |
"I will win the Trump University case. I already am, as far as I'm concerned," Mr Trump said in June. | "I will win the Trump University case. I already am, as far as I'm concerned," Mr Trump said in June. |
"I could settle that case. I could have settled that case. I just choose not to." | "I could settle that case. I could have settled that case. I just choose not to." |
Mr Trump would not admit any wrongdoing in the settlement, a source familiar with the settlement told the BBC earlier on Friday, adding that it is a "180 degree reversal" for the president-elect. | |
Trump University promised students the opportunity to learn from "hand-picked" teachers, that actually were not chosen by Mr Trump himself. | |
The closest students ever got to the real estate mogul was having their photo taken beside a cardboard cutout of him, Mr Schneiderman has alleged. He also said that Mr Trump personally pocketed about $5m (£4m) in the "scheme". |