Litigation
Apr. 5, 2017
Judge gives final approval to $25M Trump University settlement
A San Diego federal judge said the deal resolving three cases would provide an "extraordinary amount of recovery" for class members.
A San Diego federal judge gave final approval Friday to a $25 million settlement of three fraud cases against President Donald J. Trump'sdefunct Trump University, a deal the court said would provide an "extraordinary amount of recovery" for class members.
U.S. District Judge Gonzalo P. Curielhighlighted in his order how the nearly 4,000 class members who submitted claim forms are expected to receive at least 90 percent of what they spent on the real estate seminars they alleged were more like infomercials than legitimate courses. Some of the seminars cost students $35,000.
Curiel wrote that the high recovery amount was "all the more exceptional when viewed in light of the risk of establishing liability at trial, the likelihood of appeal, the possibility of reversal, the complexity of conducting thousands of individual damages determinations, and the likely lengthy duration of further litigation."
The judge also commended class members' counsel for not seeking to recover their fees or costs for nearlyseven years of legal work.
Attorneys from Robbins Geller Rudman & Dowd LLPand Zeldes Haeggquist & Eck LLPin San Diego represented class members in the two California class-actions before Curiel.
"Indeed, that eligible class members may receive recovery of 90 [percent] or greater is a testament to class counsel's representation and dedication to act in their clients' best interest," Curiel wrote in his 31-page order.
Daniel Petrocelli, of O'Melveny & Myers LLPin Los Angeles, led the team representing the defendants. Trump has denied the plaintiffs' allegations and did not admit any wrongdoing as part of the settlement.
In his order, Curiel also overruled what he said was the one "procedurally valid" objection to the settlement.
Sherri Simpson, a Florida attorney, argued that she had a lack of opportunity to opt out at the settlement stage to pursue her own case against Trump and Trump University.
Curiel said Simpson's arguments were "unavailing," and he notedthat she chose to submit a claim for her share of the settlement fund.
Class counsel said an appeal could tie up the settlement payments for years.
Meanwhile, Curiel approved $15,000 service awards for class representatives John Brown, Art Cohen, J.R. Everett, Sonny Lowand former plaintiff Tarla Makaeff.
Low became the named plaintiff in one of the suits after Makaeff withdrew last year.Low v. Trump University LLC, 10-CV0940 (S.D. Cal., filed April 30, 2010).
Cohen was the named plaintiff in the case alleging Trump was part of a racketeering scheme through Trump University.Cohen v. Trump, 13-CV02519, (S.D. Cal., filed Oct. 18, 2013).
The third case resolved by the settlement was brought by the New Yorkattorney general in 2013.
Lyle Moran
lyle_moran@dailyjournal.com
For reprint rights or to order a copy of your photo:
Email
Jeremy_Ellis@dailyjournal.com
for prices.
Direct dial: 213-229-5424
Send a letter to the editor:
Email: letters@dailyjournal.com