NY court allows Trump University fraud case to proceed

02 Feb 2016 | Written by Prachi ; Edited by Gaurav

A $40 million fraud case against Republican presidential front-runner Donald Trump's now-defunct Trump University was allowed to proceed by an New York appeals court.

The lawsuit was filed by New York attorney general Schneiderman, who accused Trump University of misleading thousands of students.

Trump University, which Trump chaired, has become a target for his rival Republican presidential contenders, particularly Marco Rubio.

In context: Fraud case against Trump University

Introduction 2005Trump University launched

Trump University, now known as the Trump Entrepreneur Initiative is an online education company which was founded in 2005 and is chaired by Donald Trump.

The company offers courses in real estate, asset management, entrepreneurship, and wealth creation, charging fees ranging from US$1,500 to US$35,000.

It is not affiliated to any college or university and does not provide college credits or degrees.

19 Jun 2010Trump University hauled up by NY Education officials

New York's Department of Education severely castigated Donald Trump for using the term "university" to describe his online school, calling its use of the name misleading and illegal.

A Trump college official said that the school would cooperate with authorities and consider changing its name to the less misleading 'Trump Education.'

New York officials declined to comment on what further action could be taken.

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New York Attorney General investigating Trump University

19 May 2011New York Attorney General investigating Trump University

The New York Attorney General's office initiated an investigation into alleged discrepancies and illegal activities in the Trump University owned by Donald Trump.

The investigation was prompted by allegations of illegal business practices which attorney general, Eric T. Schneiderman found to be "credible" and "serious".

The AG looked into allegations of misrepresentation of the company's ability to find students jobs, education costs, and accreditation.

24 Aug 2013Trump University: Attorney General files $40 million lawsuit

The New York State attorney general's office filed a $40 million civil lawsuit accusing Trump University of engaging in illegal business practices.

The lawsuit accused the Trump Organization of running an unlicensed educational institution from 2005 to 2011 and making false claims about its classes.

According to the lawsuit, Trump failed to appoint instructors and design any curriculums for the courses offered.

28 Feb 2014Trump faces California class action lawsuit

A federal judge in two California cases denied Donald Trump's requests to dismiss claims of fraud and racketeering over Trump University.

Judge Gonzalo Paul Curiel dismissed Trump's motion to defer claims that the school violated federal racketeering laws.

In a similar case in New York, a Supreme Court judge dismissed some of the claims against Trump, however ordered the case against him to proceed.

Trump made to pay $798,000

In April 2015, Trump was ordered to pay $798,000 in legal fees to a former student who won a lawsuit, in which she said she shelled out $60,000 for a real estate program that consisted of seminars which turned out to be little better than infomercials.
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02 Feb 2016NY court allows Trump University fraud case to proceed

29 May 2016Judge orders release of Trump University case files

A federal judge ordered the release of Trump University internal documents, in a class-action lawsuit against the real estate school owned by Republican presidential candidate Donald Trump.

US District Judge Gonzalo Curiel in San Diego, ordered the release in response to a request by The Washington Post.

Officials said that as per the judgement, the files would have to be released by 2 June.