Updates to include statement from the Trump Organization.
Donald Trump will pay $25 million to settle fraud cases brought against his Trump University, said New York State Attorney General Eric Schneiderman on Friday, who called the agreement a "stunning reversal" by the president-elect.
"Donald Trump fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university," Schneiderman said. "Today, that all changes. Today's $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university."
Under the terms of the settlement, every victim will receive restitution, and Trump will pay up to $1 million in penalties to the state for violating its education laws.
The agreement brings to a close the $40 million civil suit Schneiderman filed against Trump University in 2013 as well as two federal class-action cases in San Diego if approved, reports The New York Times. According to reports from multiple media outlets, Trump will not admit to wrongdoing.
"We are pleased to announce the complete resolution of all litigation involving Trump University. While we have no doubt that Trump University would have prevailed at trial based on the merits of this case, resolution of these matters allows President-Elect Trump to devote his full attention to the important issues facing our great nation," according to a statement by a spokesperson for the Trump Organization.
Trump University operated as a real estate training program from 2005 to 2010 and raised red flags from the start. The New York State Education Department notified the business as early as 2005 that its practices violated state law by calling itself a "university" even though it lacked the necessary charter to do so.