The Trump University lawsuit remains a landmark case in American legal and consumer protection history, shaping discourse about fraudulent education practices and accountability for high-profile business leaders. The lawsuits against Trump University—launched between 2010 and 2016—culminated in a $25 million settlement in 2016 after President Donald Trump’s election. These actions followed years of claims alleging deceptive practices, false advertising, racketeering, and violation of state and federal laws, impacting thousands of students nationwide who enrolled in costly seminars with the promise of real estate mastery taught by “handpicked” experts.
Trump University Lawsuit: Allegations, Class Actions, and the 2016 Settlement
The core of the Trump University lawsuit centered on three major legal cases:
- New York v. Trump Entrepreneur Initiative LLC: The New York Attorney General sued, alleging illegal business practices and deceptive claims. The suit argued that Trump University was unlicensed, unlawfully used the term “university,” and falsely promised success in real estate.
- Low v. Trump University, LLC (Federal Class Action): Plaintiffs in California, New York, and Florida filed a class action in federal court claiming breach of contract, fraud, and negligent misrepresentation, seeking refunds and punitive damages for thousands who paid up to $35,000 for seminars and mentorships proven to be ineffective or misleading.
- Makaeff v. Trump University, LLC: This suit included anti-SLAPP counterclaims and defamation claims, examining whether Trump University could pursue damages for critical statements, ultimately affirming wide protections for consumer complaints against public figures.
Legal proceedings unveiled internal “playbooks” and employee testimonies revealing high-pressure sales tactics, lack of true mentorship, and rarely any involvement by Donald Trump himself. Plaintiffs described the company as a “bait-and-switch” scheme. Despite Trump’s public insistence of innocence and high customer satisfaction, judges found consistent issues with misrepresentation and licensing, upholding the lawsuits.
Settlement and Student Outcomes
In November 2016, Donald Trump agreed to a $25 million settlement to resolve all claims involving Trump University, just days before a major class action trial. The settlement, approved by the court in March 2017, distributed $21 million to class action participants and $3 million to New Yorkers outside the class. A $1 million penalty was assessed for operating without a business license, and attorneys worked pro bono to maximize student refunds—allowing many former students to recover up to 90% of their tuition and fees.
The agreement was reached with no admission of wrongdoing by Trump, who cited presidential time constraints and denied liability. Final payments were completed in 2018 after all individual claims were resolved. Repayment was covered by Trump’s Las Vegas hotel business partner, Phil Ruffin.
Public and Legal Significance
The Trump University lawsuit offered a cautionary tale about for-profit educational ventures and celebrity branding in higher education, while underscoring the importance of regulatory oversight and consumer protection. It set legal precedents regarding anti-SLAPP protections and class action certifications for education-related fraud.
The case contributed significantly to public debate over business ethics, transparency in advertising, and the responsibility of institutions and public figures to deliver promised value, particularly to vulnerable consumers.
Conclusion
As of 2025, the Trump University lawsuit has been fully resolved with no new litigation or outstanding claims related to the case. Its legacy continues to influence standards and consumer rights in real estate education and for-profit academic enterprises, reminding consumers to remain vigilant about the credentials and advertising practices of such ventures.
The Trump University lawsuit stands as an enduring chapter in the intersection of business, law, and public trust.
