New York Court Deals Trump A Super Tuesday Blow In Fraud Suit Over Trump U

huffingtonpost.com

Republican presidential front-runner Donald Trump suffered a legal setback on Tuesday when a New York state court allowed a multi million-dollar fraud claim against Trump University, filed by the state's attorney general, to proceed.

The claim is part of a lawsuit that accuses Trump and the now-defunct for-profit venture of misleading thousands of people, who paid up to $35,000 to learn the billionaire businessman's real estate investment strategies.

Trump University, which Trump chaired, has become a target for his rivals for the Republican presidential nomination, particularly Marco Rubio.

Attorney General Eric Schneiderman's lawsuit, filed in 2013, seeks $40 million in restitution plus penalties and other costs, his office said.

The ruling by a four-judge panel of a mid-level appeals court in Manhattan brings the case closer to a potential trial. It could make it easier for the Trump venture ultimately to be held liable, because the claim does not require proof that there was intent to defraud.

The judges also extended the statute of limitations for the claim back to 2007 instead of 2010, as Trump's attorneys want. The program stopped taking students in 2010.

"Today's decision is a clear victory in our effort to hold Donald Trump and Trump University accountable for defrauding thousands of students," Schneiderman said in a statement.

The Trump Organization's general counsel, Alan Garten, said he would seek to appeal the ruling, and called the case "politically motivated." Schneiderman is a Democrat.

"We think all these claims are without merit and baseless," Garten said. "Ninety-eight percent of those who participated in the programs filled out written surveys giving the programs the highest grades."