Dec 22, 2016 01:25 AM EST
Donald Trump To Pay $25 Million Settlement Before Inauguration For University Fraud Case
Donald Trump has agreed to pay $25 million as settlement for his university's fraud case. Moreover, he is required to pay the amount two days before his inauguration.
Politico reported that Trump's lawyers submitted the settlement to a federal court in San Diego on Monday evening. The document confirmed that the president-elect is "personally guaranteeing" that the $25 million will be given to plaintiffs' lawyers by Jan. 18, 2017.
The deal has saved Trump from facing a civil class-action fraud trial as he goes on to take over as the nation's president. With this, Trump University is required to offer refunds of approximately 50 percent of the fees paid by its students.
Students usually pay about $1,500 for a three-day seminar. It's higher for those who want to enroll in a mentorship program, which costs $35,000.
Previously, Donald Trump has requested for the postponement of the hearing of his fraud case. He cited the excuse of being a "political novice" and the challenges he will face during the transition to the White House.
Back in summer, Donald Trump was able to successfully request that the trial and his testimony be postponed until the election has finished. Now, as he emerged victorious, his lawyers argued that he is too busy to prepare for the trial.
According to Variety, part of the settlement, $21 million, will be given to former students or members of the class. However, Trump and Trump University did not admit to any crime as part of the settlement.
Bloomberg added that the judge has given the plaintiffs 75 days to file their objections to the settlement. A final approval hearing has been scheduled for Mar. 30.
Donald Trump will not be able to use money from his charitable foundation, Donald J. Trump Foundation, to pay the $25 million settlement. His lawyers have confirmed that no funds for the settlement would come from "any charitable foundation or other charitable entity."
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