A federal
judge on Thursday said he was leaning toward approving a $25 million settlement
of fraud claims against President Donald Trump and his Trump University
real estate seminars but deferred a final decision to a later date.
real estate seminars but deferred a final decision to a later date.
At a hearing
in San Diego, Judge Gonzalo Curiel noted that, under the class action
settlement, former Trump University students were expected to recover 80
percent of the money they spent on courses and mentoring programs.
"That is
an extraordinary amount," the judge said, noting the recovery rate in
similar lawsuits is usually closer to between 11 and 20 percent. He did not
specify when he would rule.
A Florida
woman objected to the settlement, saying she should have the opportunity to opt
out and take Trump to court herself.
Patrick
Coughlin, a class action lawyer for the students, said the students would
actually receive over 90 percent of their money back. Some 3,730 students
submitted claim forms in the class action that dates to 2010, according to
court papers.
The students,
who paid as much as $35,000 for the seminars, claimed they were lured by false
promises that they would learn Trump’s investing “secrets” from his
“hand-picked” instructors.
Trump vowed to
continue fighting the fraud claims during the presidential election campaign
but agreed to the settlement soon after. He has admitted he did not personally
select the instructors, but his lawyers have described the claim as mere sales
"puffery."
Trump accused
Curiel of bias last year based on the Indiana-born judge's Mexican ancestry.
Sherri
Simpson, of Fort Lauderdale, Florida, who paid $19,000, objected to the
settlement provision blocking students from opting out of the deal. She has
said in court papers she would like to seek full recovery from Trump, plus
punitive damages and other relief.
Gary Friedman,
a lawyer for Simpson, argued in court the notices were defective. Curiel
questioned Friedman and said he would consider the objection.
*REUTERS*
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