Judge Curiel Approves $25 Million Trump University Settlement, Victims to Receive 90% Refunds

U.S. District Judge Gonzalo Curiel approved the $25 million Trump University settlement on March 31, 2017, clearing the way for approximately 3,730 victims to receive refunds of at least 90 percent of the money they spent on Trump University courses. The approval came four months after Trump agreed to settle the cases just 10 days after winning the presidency. Trump had paid the $25 million in January 2017 and the funds were held in escrow pending final approval. Under the settlement terms, more than 6,000 Trump University students across two class actions would receive restitution, with the largest recovery going to those who paid for the most expensive programs. Judge Curiel—the same judge Trump had attacked as biased due to his “Mexican” heritage during the 2016 campaign—oversaw the settlement approval, demonstrating judicial impartiality despite Trump’s racist attacks.

Background

The settlement approval process hit one complication when one class member appealed and sought to opt out, arguing the settlement was inadequate. This delayed final distribution of funds. Trump’s legal team had negotiated the settlement specifically to avoid trial testimony that would have occurred during the presidential transition. The $25 million represented a significant payout covering three separate lawsuits: two federal class actions in California and the New York Attorney General’s civil fraud suit. The settlement structure allocated $21 million to class action participants, $3 million to New Yorkers not covered by the class actions, and up to $1 million in penalties to New York State. While Trump did not admit wrongdoing as part of the settlement, the substantial payment and 90% recovery rate for victims effectively acknowledged the strength of the fraud case against him.

Significance

Judge Curiel’s approval of the settlement marked a significant moment of accountability for a sitting president’s documented fraud. The 90% recovery rate for victims was unusually high for consumer fraud settlements, reflecting the overwhelming evidence of systematic deception revealed in internal Trump University playbooks and employee testimony. The settlement closure meant Trump avoided testifying under oath about his role in defrauding thousands of Americans, but the $25 million payment and high recovery percentage for victims sent a clear message about the legitimacy of the fraud claims. The irony that Judge Curiel—whom Trump had viciously attacked with racist rhetoric—presided over the settlement approval with perfect judicial impartiality highlighted Trump’s unfounded accusations of bias. The settlement represented one of the rare instances where Trump faced meaningful financial consequences for documented misconduct, though he successfully avoided the reputational damage that would have accompanied sworn testimony about his fraudulent business practices.