Trump University lawsuit nears $25m payout




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captionDonald Trump listens as Michael Sexton speaks at the launch of the Trump University investment school in 2005Trump elected



Donald Trump is nearing settlements in several fraud lawsuits relating to Trump University, the BBC has learned.

The US president-elect is being sued by former students who paid $35,000 (£28,000) for real estate "secrets" from his "hand-picked" instructors.

Mr Trump was criticised as a candidate for saying that the California judge hearing the case could not be impartial because he is of Mexican heritage.

The businessman faces three fraud lawsuits in California and New York.

A spokesperson for New York Attorney General Eric Schneiderman said the attorney general "has always been open to a settlement that fairly compensates the many victims of Trump University who have been waiting years for a resolution".

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captionTrump University seminar DVDs on display at the Republican Convention in Cleveland

Mr Schneiderman had sought a $40m (£32m) payout from Mr Trump over the university, which closed in 2010.

He called Trump University a "fraud from beginning to end" this past July, adding that the organisation used "false promises to prey on desperate people".

A source familiar with the discussions told the BBC on Friday the settlement, which would finalise all three cases, could cost Mr Trump as much as $25m (£20m).

US District Judge Gonzalo Curiel, who is presiding over the two California cases, has urged both sides to settle out of court.

Mr Trump repeatedly claimed during his campaign that he would not settle the class-action lawsuits.

"I will win the Trump University case. I already am, as far as I'm concerned," Mr Trump said in June.

"I could settle that case. I could have settled that case. I just choose not to."

Mr Trump would not admit any wrongdoing in the settlement, the source said, adding that it is a "180 degree reversal" for the president-elect.

His lawyers had requested a delay in the case, but were refused.

http://www.bbc.com/news/world-us-canada-38021820