Judge Finalizes Trump University Settlement After Appeal Resolved, Victims Receive Payments

U.S. District Judge Gonzalo Curiel issued a final order on April 10, 2018 concluding the Trump University litigation and authorizing distribution of the $25 million settlement to approximately 3,730 victims who would receive at least 90 percent of their money back. The finalization came more than a year after the initial settlement approval in March 2017, delayed by an appeal from one class member who sought to opt out of the settlement. With the appeal resolved, victims of what court documents described as Trump’s “fraudulent scheme” finally received restitution for money lost to Trump University’s predatory sales tactics. The settlement closure occurred while Trump was serving as president, marking one of the few instances of accountability for his business fraud while in office.

Background

The path to final settlement distribution took over 18 months from the November 2016 settlement agreement. Trump paid the $25 million into escrow in January 2017, but one class member’s appeal delayed distribution while courts resolved the opt-out request. The settlement covered more than 6,000 Trump University students across three lawsuits who had paid between $1,495 for introductory seminars and $34,995 for “elite” mentorship programs that failed to deliver promised value. The 90% recovery rate was significantly higher than typical consumer fraud settlements, reflecting the overwhelming documentary evidence of systematic deception including internal sales playbooks, employee testimony describing a “fraudulent scheme,” and victim testimony about losing life savings. The settlement allowed Trump to avoid testifying under oath about his role in the fraud, but the substantial payment effectively acknowledged the strength of the case against him.

Significance

The finalization of Trump University settlement payments represented closure for thousands of fraud victims who had been exploited by Trump’s predatory business practices. The 90% recovery rate vindicated their claims and New York Attorney General Eric Schneiderman’s characterization of the scheme as “straight up fraud.” The settlement completion while Trump served as president underscored the extraordinary circumstance of a sitting president having recently paid $25 million to settle fraud claims from systematically deceiving ordinary Americans. Judge Curiel’s handling of the case from unsealing damaging documents through final settlement distribution demonstrated judicial independence and impartiality despite Trump’s racist attacks during the 2016 campaign. The case established a documented record of Trump’s willingness to exploit vulnerable consumers—the elderly, the financially desperate, those seeking economic improvement—through deliberate deception and high-pressure tactics. While Trump avoided sworn testimony, the settlement amount and victim recovery rate spoke volumes about the legitimacy of the fraud allegations and represented one of the few instances where Trump faced meaningful consequences for documented misconduct.