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Ruling against ex-AIG boss Greenberg raises stakes in Trump University case
Source: Reuters
Politics | Tue Jun 7, 2016 5:12pm EDT
Ruling against ex-AIG boss Greenberg raises stakes in Trump University case
NEW YORK | BY KAREN FREIFELD
A ruling by New York's highest court in a fraud case against former American International Group Inc (AIG.N) Chief Executive Maurice "Hank" Greenberg could affect the state's case against Republican presidential candidate Donald Trump and his defunct Trump University.
The New York Court of Appeals ruled on Thursday that state Attorney General Eric Schneiderman could seek to recoup millions of dollars in bonus payments to Greenberg using the legal remedy called disgorgement.
Unlike damages, which are used to compensate victims' losses, disgorgement requires a defendant to give back gains obtained from unlawful means. The ruling means that Schneiderman can go after $5 million he says Trump personally pocketed from the Trump University real-estate seminar venture.
"It doesn't help him," Jeffrey Goldman, Trump's lawyer in the New York case, said on Monday of the Greenberg ruling. But Goldman said Trump expected to win the case and could also try to limit the amount subject to disgorgement, such as by arguing that most of it was earned outside of New York.
According to the state's 2013 lawsuit against Trump, filed in state court in Manhattan, Trump University was an unlicensed, illegal operation that bilked students of up to $35,000 each between 2005 and 2011. Two proposed class actions in California make similar allegations.
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Ruling against ex-AIG boss Greenberg raises stakes in Trump University case
NEW YORK | BY KAREN FREIFELD
A ruling by New York's highest court in a fraud case against former American International Group Inc (AIG.N) Chief Executive Maurice "Hank" Greenberg could affect the state's case against Republican presidential candidate Donald Trump and his defunct Trump University.
The New York Court of Appeals ruled on Thursday that state Attorney General Eric Schneiderman could seek to recoup millions of dollars in bonus payments to Greenberg using the legal remedy called disgorgement.
Unlike damages, which are used to compensate victims' losses, disgorgement requires a defendant to give back gains obtained from unlawful means. The ruling means that Schneiderman can go after $5 million he says Trump personally pocketed from the Trump University real-estate seminar venture.
"It doesn't help him," Jeffrey Goldman, Trump's lawyer in the New York case, said on Monday of the Greenberg ruling. But Goldman said Trump expected to win the case and could also try to limit the amount subject to disgorgement, such as by arguing that most of it was earned outside of New York.
According to the state's 2013 lawsuit against Trump, filed in state court in Manhattan, Trump University was an unlicensed, illegal operation that bilked students of up to $35,000 each between 2005 and 2011. Two proposed class actions in California make similar allegations.
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Read more: http://www.reuters.com/article/us-usa-election-trumpuniversity-idUSKCN0YT2M2
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