MANHATTAN — President-elect Donald Trump has agreed to pay $25 million to settle a series of lawsuits — including one brought by state Attorney General Eric Schneiderman — that accused his real estate school of swindling thousands of students out of millions of dollars.
Under the settlement, Trump will pay up to $1 million in penalties to the state of New York for violating state education laws, according to Schneiderman's office.
"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," Schneiderman said in a statement.
"The victims of Trump University have waited years for today's result and I am pleased that their patience — and persistence — will be rewarded by this $25 million settlement," Schneiderman added.
Trump will pay roughly $4 million to settle the Schneiderman case with the rest going to two federal class-action lawsuits in California, according to his office. Schneiderman said in his statement that under the deal every victim will receive restitution.
Schneiderman sued Trump and his school, Trump University, in 2013, saying they defrauded students by promising them access to his real estate business success secrets and failing to deliver. The lawsuit had sought $40 million in damages.
Trump is not required to admit guilt as part of the settlement, a source familiar with the case said.
Throughout his presidential campaign, Trump vowed not to settle the lawsuits against his real estate school.
"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. Today, that all changes," Schneiderman said in his statement.
Trump University has a 98% approval rating. I could have settled but won't out of principle!— Donald J. Trump (@realDonaldTrump) February 29, 2016