NY Attorney General sues Trump University for $40 million fraud

New York Attorney General Eric Schneiderman filed a $40 million civil lawsuit against Donald Trump, the Trump Organization, and Trump University (later renamed Trump Entrepreneur Initiative), accusing them of running a fraudulent scheme that defrauded thousands of students. The lawsuit alleged Trump University made false promises about the quality of its programs, falsely advertised that instructors were "handpicked" by Trump, and pressured students into paying tens of thousands of dollars for seminars that delivered little value. Schneiderman called it "a classic bait-and-switch scheme" and "a fraud from beginning to end." The case eventually settled in 2016 for $25 million after years of litigation and became a major campaign issue.

"It was a scam, starting with the fact that it was not a university." — NY AG Eric Schneiderman to CNN after filing the lawsuit in August 2013