Jan 20, 2017 08:23 AM EST
Donald Trump Pays $25 Million For University Lawsuit Days Before Inauguration
President-elect Donald Trump has paid the settlement for the lawsuit filed against Trump University. This comes days before he is set to be inaugurated as the 45th President of the United States.
Politico reported that Trump has paid $25 million to settle litigation over the real estate seminar program of Trump University, which is now known as Trump Entrepreneur Initiative. Sources revealed that the funds were transferred on the evening of Tuesday.
The money will be put on a bond until the settlement is approved by a judge. A hearing is scheduled for Mar. 31.
Donald Trump was slammed with two different federal lawsuits for Trump University. The for-profit learning enterprise is accused of deceiving students who were eager to learn his real estate secrets.
His legal representatives have confirmed that they will not be using money from the president-elect's charitable foundation to pay the $25 million settlement for the fraud case. This became an issue because Donald Trump has used money from his charitable foundation, the Donald J. Trump Foundation, to pay for lawsuit settlements for his business and personal activities.
Trump's request to postpone the trial for the lawsuit was successful back in summer. After he won the election, his lawyers argued that the hearing should be postponed so that he can focus on his new role as he is still a "political novice."
According to CNN, if approved, $21 million of the settlement will be awarded to about 7,000 former Trump University students who were covered in two California class action suits. This will only amount to half of what they paid for, though.
$4 million will be set aside for a lawsuit brought by New York Attorney General Eric Schneiderman. Trump University did not accept fault as part of the deal.
The funds for the settlement come days before Donald Trump is set to take his place as the next President of the United States. TIME noted that Trump's inauguration will be the most expensive in history even though there are lesser celebrities and other high-profile individuals in attendance.
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