Trump University is the clearest example of what this site tracks: a dispute that began as consumer complaints, became two federal class actions and a state enforcement case, and ended in a $25 million settlement — with no admission of wrongdoing.
What Trump University was
Trump University LLC launched in 2005 as a for-profit venture selling real-estate seminars and mentorships. It was never an accredited academic institution. The New York State Education Department objected to the use of the word “university” by a business that was not licensed as one, and the company was renamed the Trump Entrepreneur Initiative in 2010.
Programs ranged from a free introductory seminar up to mentorship packages costing tens of thousands of dollars.
The three cases
Two class actions were filed in the U.S. District Court for the Southern District of California:
- Low v. Trump University LLC — filed 2010 on behalf of former students.
- Cohen v. Trump — filed 2013, brought under federal racketeering law.
Separately, then-New York Attorney General Eric Schneiderman filed a state enforcement action in August 2013, People v. Trump Entrepreneur Initiative, seeking restitution for New York students.
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The plaintiffs alleged that marketing misrepresented what buyers would receive — in particular, claims about instructors being hand-picked. Trump and his companies denied the allegations throughout and contested the cases.
How it ended
On 18 November 2016, days after the presidential election, a settlement of all three matters was announced: $25 million, covering the two federal class actions and the New York action.
U.S. District Judge Gonzalo Curiel granted final approval on 31 March 2017. One class member objected and appealed, which delayed distribution; the Ninth Circuit rejected that appeal in February 2018, clearing the way for payments. Class members recovered a substantial share of what they had paid.
The settlement contained no admission of liability or wrongdoing. That distinction matters, and it is the distinction this site applies everywhere: a complaint asserts, a court finds, and a settlement resolves without either.
Why it sits on this site
Trump University is the reference case for the pattern we follow — private plaintiffs and a state regulator pursuing the same conduct on parallel tracks, resolving together. For current litigation involving the administration, see our Lawsuits & Settlements coverage.
Sources
- Court records, U.S. District Court for the Southern District of California — Low v. Trump University LLC; Cohen v. Trump.
- Office of the New York State Attorney General — People v. Trump Entrepreneur Initiative.
- Contemporaneous reporting of the settlement and its approval by NBC News.