SAN DIEGO — A Florida woman asked Monday to be excluded from a proposed settlement with President Donald Trump over fraud allegations at his now-defunct Trump University, setting the stage for a possible trial if a federal judge agrees.
Attorneys for Sherri Simpson said in a court filing that lawyers for former students in class-action lawsuits promised in 2015 that they could ask to be excluded from any future settlement. A settlement announced less than two weeks after Trump's election allows class members to object to the terms, but they can no longer drop out, preventing them from suing on the own.
Monday was the last day for former students to object to the $25 million settlement, which U.S. District Judge Gonzalo Curiel will consider for final approval at a hearing on March 30 in San Diego.
Curiel, a target of Trump's repeated criticism during the presidential campaign, granted preliminary approval to the agreement in December and has said he hoped it would be part of a healing process that the country sorely needed. It settles two class-action lawsuits before Curiel on behalf of about 7,000 former students and a civil lawsuit by New York Attorney General Eric Schneiderman.
The former students would get at least 50 per cent of their money back, according to plaintiff attorneys, who waived their fees to allow for larger payouts.
Attorneys for Simpson, of Fort Lauderdale, said many may be satisfied with the payment and acknowledged it is high under standards for class-action lawsuits but that their client wasn't prepared to take it.
"What Ms. Simpson seeks is her day in court, at which she will press for the complete vindication of all her rights, including her full damages plus punitive damages and injunctive relief. Due process guarantees her the autonomy to pursue these goals," her attorneys said.
According to the proposed settlement, former students had until Nov. 16, 2015, to opt out of a future settlement and cannot sue Trump on the same grounds. Thirteen people opted out, but not Simpson.
Jason Forge, an attorney for plaintiffs, said Monday that the former students had been repeatedly informed of the opt-out deadline. "Anyone who chose to give up their individual claim and remain in the class will be rewarded for doing so under the terms of what is (a) historically beneficial settlement," he said in an email.
The lawsuits allege that Trump University gave nationwide seminars that were like infomercials, constantly pressuring people to spend more and, in the end, failing to deliver on its promises. They contend that Trump misled students by calling the business a university and by saying that he had hand-picked the instructors.
After attending two seminars in Florida in 2010, Simpson enrolled in the "Gold Elite" mentorship program for $35,000.
Attorneys for Trump did not immediately respond to a request for comment.
Trump admits no wrongdoing under the proposed settlement.
Elliot Spagat, The Associated Press