U.S. President-elect Donald Trump has agreed to settle lawsuits relating to his Trump University series of real estate seminars for $25 million, the New York Attorney General’s office said on Friday.
“Today’s $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university,” Attorney General Eric Schneiderman said in a statement. “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.”
Reuters, along with the The New York Daily News, initially reported some details of the news.
A source told CNBC earlier on Friday that the case was nearing a settlement, and that the president-elect would agree to pay $20 million to $25 million to settle the complaint. CNBC has reached out to Trump’s attorney.
Trump will not admit to any wrongdoing in the final agreement, the source said.
Claims brought by New York’s attorney general will represent roughly $4 million of that amount, the source said. The law firms representing students in the case will not seek attorneys fees, only costs, the Reuters source said.
“In 2013, my office sued Donald Trump for swindling thousands of innocent Americans out of millions of dollars through a scheme known at Trump University,” Schneiderman’s statement said. “Donald Trump fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university. Today, that all changes.”
— NBC News and Reuters contributed to this report.