Buyers of Trump Condos and Real Estate Classes File Suits Claiming They Were Misled
Donald Trump touts his financial success, but his business practices are being scrutinized in lawsuits over failed condo developments and the developer’s real-estate investment school.
More than 300 home buyers who say they bought because of the Trump name sued when three Trump buildings encountered financial problems and were not completed, the New York Times reports. Buyers say they relied on Trump involvement, but in reality Trump licensed his name to the developers. Buyers collectively lost millions of dollars in deposits, the Times says, even as Trump earned large licensing fees.
In Tampa, Fla., for example, Trump licensed his name to a developer for $4 million and a share of the profits in a confidential agreement, court documents reveal. Suits target the Tampa development as well as one in Fort Lauderdale, and another project in Baja California, Mexico. A lawyer for Trump told the Times that Trump’s role was disclosed in purchasing documents, despite any other suggestions by Trump or the marketing materials.
Some students who enrolled in Trump University to learn about real estate investment are also dissatisfied. A would-be class action alleges the school charged as much as $35,000 for classes that were akin to extended infomercials. A Trump lawyer tells the Times, however, that fewer than 2 percent of the students want their money back and Trump University has a 97 percent satisfaction rate.
Prior coverage:
ABAJournal.com: “Donald Trump Name Sells Condos, But Is He Liable for Failed Project?”
