Court Certifies Trump University Class Action

Nationwide, for-profit schools are being scrutinized for failing to deliver on education and jobs, while costing students upwards of tens of thousands a year. A California federal court recently certified a class action filed by several students against Donald Trump and Trump University. The class action should be a warning to other institutions, including for-profit law schools, culinary schools, business schools, and other colleges that have left students disillusioned and regulatory authorities prepared to take action.

Nationwide, for-profit schools are being scrutinized for failing to deliver on education and jobs, while costing students upwards of tens of thousands a year. A California federal court recently certified a class action filed by several students against Donald Trump and Trump University. The class action should be a warning to other institutions, including for-profit law schools, culinary schools, business schools, and other colleges that have left students disillusioned and regulatory authorities prepared to take action.

According to the complaint, the school purported to sell Trump’s billion-dollar investing secrets and techniques. Students and their representatives allege that, not only does the school fail to deliver, it intentionally misleads consumers into purchasing pricy seminars and “mentorship programs.” Other perks of the program include “diplomas” or Certificates of Completion boasting Donald Trump’s signature as well as a picture with his own life-sized photo. In response to the lawsuit and alleged consumer complaints, Trump has countered, saying that his students boast a 98% satisfaction rate. 

Some critics say that consumers should have known better, given Trump’s reputation, though others accuse him of preying on those who could not afford the programs. According to the suit, Trump lured students with his celebrity status. The lawsuit could be a game-changer, not only for Trump, but for other “for-profit” education models that seek to cash in on consumers’ desperation. Trump U isn’t the first or last institution that uses aggressive recruitment tactics to get students to take out loans or pay for degrees that may have no real value.

In 2010 Trump U was forced to rename as the Trump Entrepreneur Initiative after state educational officials issued repeat warnings that the school was not a chartered university. Furthermore, the school was operating as an illegal education institution. For-profit colleges are facing a rising number of individual, class action and government lawsuits. Many of these schools were found to charge high tuition rates while failing to deliver on educational or occupational promises. Recent cases include a $10 million dollar state settlement with Career Education Corp, a for-profit school that systematically deceived students with misleading advertisements and inflated job placement statistics. Chester Career College in Richmond, Virginia agreed to a $5 million class action settlement with eight former students who claimed the school targeted minorities and failed to provide adequate education. Another student won a $13 million lawsuit in Missouri for similarly deceptive practices.

Consumer-students who have been targeted by for-profit institutions should be aware of their rights and the potential for legal action. Many schools in Minnesota and nationwide have been known to inflate job-placement statistics and make misleading statements about graduation rates or career opportunities. For-profit universities and institutions, like Trump U, should be held accountable to stop illegal and deceptive practices. At Wanta Thome PLC, we are experienced helping consumers protect their rights. For more information about consumer law and filing a student class action, please call 612-252-3570.