State of New York v. Trump University: Trump Wins This Round

NEW YORK (TheStreet) -- On Friday, Judge Cynthia S. Kern of the Supreme Court of New York issued a mixed ruling on the $40 million fraud lawsuit against Donald Trump and Trump University stemming from student dissatisfaction with real estate educational seminars. In the decision, Kern ruled that several of the alleged instances of fraud had passed their statute of limitations. Some of the fraud accusations were decided to have a longer statute of limitations and allowed to proceed in court, though. 

It's not over yet, but I think that the first round in this lawsuit has gone to Trump.

The judge's decision dealt a blow to New York Attorney General Eric Schneiderman, who sued Trump and his namesake business, Trump Entrepreneur Initiative (formerly Trump University) for fraud.

The latest legal ruling reduces the number of students eligible to pursue the case. Sources tell me that it will be extremely difficult -- if not impossible -- for the few remaining students to prevail, and those who continue will be forced to meet a far more difficult set of standards.

A source further suggests that the $40 million price tag has now been watered down to less than $40,000.

Trump's lawyer, Alan Garten, told Business Insider that "the judge's ruling will require each student to come to New York to testify 'why they are seeking a refund when 98% of all students previously filled out written report cards giving the school high marks and stating that they were completely satisfied with the program.'"

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