Friday, November 18, 2016

What did Donald Trump do today?

He settled a civil fraud lawsuit over his "Trump University" business, paying $25,000,000 to end the litigation.

The terms of the settlement included $1,000,000 in penalties for breaking New York state laws, but did not require Trump to admit wrongdoing. 

Trump had previously vowed to take the case to trial, saying "I just don't believe in settling, especially when you're right." Trump admitted in a deposition that he had lied about his ability to vouch for (or even recognize) the "expert" instructors, who were revealed to have little or no knowledge of the real estate business. Some of the Trump University employees themselves testified that it was a fraudulent scheme.

So why is this a bad thing?

  • The most likely reason that Trump was willing to pay $25,000,000 to people who accused him of fraud is that he believed a jury would order him to pay more than $25,000,000 to people who accused him of fraud.
  • Ideally, the President of the United States is not someone who has to settle a lot of fraud cases against him.
  • "I wasn't forced to admit wrongdoing" isn't necessarily the best look for a president.