NY court allows fraud claim against Trump University to proceed
Republican presidential front-runner Donald Trump suffered a legal setback on Tuesday when a New York state court allowed a multimillion-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.
NY court allows fraud claim against Trump University to proceed
Republican presidential front-runner Donald Trump suffered a legal setback on Tuesday when a New York state court allowed a multimillion-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.
NY court allows fraud claim against Trump University to proceed
