In Major Reversal, Trump Settles Fraud Case

Despite vowing on the campaign trail to fight, President-elect Donald Trump reached a $25 million settlement and put to rest fraud allegations related to his for-profit Trump University. The settlement was announced just 10 days before a federal class-action lawsuit in San Diego was set to be heard by a jury. By settling, Trump avoids the potentially embarrassing and unusual move of testifying while he is working to structure his incoming administration. Trump has a history of eagerly litigating disputes, and publicly mocking businessmen who agree to settle lawsuits. As recently as June, Trump had said on Twitter: “After the litigation is disposed of and the case won, I have instructed my execs to open Trump U(?), so much interest in it!” But this weekend, he explained the choice to settle. “I settled the Trump University lawsuit for a small fraction of the potential award because as President I have to focus on our country,” Trump wrote in a tweet. In a second tweet, he added: “The ONLY bad thing about winning the Presidency is that I did not have the time to go through a long but winning trial on Trump U. Too bad!” The suits were brought by students who said they were cheated out of $35,000 tuition, because the programs were unhelpful, engaged in unscrupulous and exploitative business practices, and employed unqualified instructors.