Robbins Geller Rudman & Dowd Files Consumer Class Action against Trump University

Case Summary

Press Release

Robbins Geller Rudman & Dowd Files Consumer Class Action against Trump University

On April 30, 2010, Robbins Geller Rudman & Dowd, LLP filed a nationwide class action lawsuit against Trump University, along with the law firm of Zeldes & Haeggquist, LLP (www.zhlaw.com), on behalf of consumers who were duped into purchasing Trump University real estate investing seminars.

Trump University markets itself as a University to "train, educate and mentor entrepreneurs on achieving financial independence through real estate investing." In true fact, it is anything but. In January, 2010, the Better Business Bureau gave Trump University a D-minus rating, and the New York Department of Education recently reprimanded Trump University for using "University" in its title as it is "misleading and violates New York Education Law and the Rules of the Board of Regents."

The class action lawsuit, which was filed in the U.S. District Court for the Southern District of California, alleges Trump University made materially misleading misstatements in its advertising and real estate seminars, in violation of federal and state law. Plaintiff and class members who attended Trump University's real estate investing classes were promised a "complete real estate education," a "one year apprenticeship," a one-on-one mentorship, practical and fail-safe real estate techniques, a "power team" consisting of real estate agents, lenders, personal finance managers, property managers and contractors, and were assured that although the seminars cost as much as $35,000, they would make the money back in their first real estate deal, and could make up to tens of thousands of dollars per month or more. However, instead, each seminar was merely an "infomercial" to up-sell the student to purchase an additional Trump Seminar. The promised "one year apprenticeship" was in actual fact a 3-day seminar; the one-on-one year-long mentorship consisted of a 2-1/2 day excursion to view properties, and "mentors" recommended real estate deals in which they stood to financially benefit, and then quickly disappeared and failed to return calls. One of the most disturbing practices was telling students to raise their credit card limit 4 times, presumably to make real estate purchases, but then Trump University representatives told the students to use their newly increased credit limit -- not to purchase real estate - but to purchase the next Trump "Gold" seminar - for $35,000.

Further, the Trump University targeted and preyed on the fears of seniors, asking "How many of you lost a lot of your 401k investment in the market? How many of you are retired? How many of you want to leave a legacy or property to your kids?" Such tactics were not only unconscionable but illegal.

If you have further information about Trump University or questions about your rights, please email Rachel Jensen at 619.231.1058 or email her at rachelj@rgrdlaw.com.

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