Woman plans to appeal Trump University settlement, which could delay payout to others

A woman who was the only official objector to the $25-million deal to settle three Trump University lawsuits said Monday that she would appeal the settlement, a move that could mean months of further litigation and delay any payout.

Sheri B. Simpson filed a formal notice of appeal with the 9th U.S. Circuit Court of Appeals. The move was immediately criticized by the lawyer for the other 3,700 or so class members who are eligible to get up to 90% of what they spent on President Trump’s defunct real estate success program.

Gary Friedman, the lawyer for Simpson, said the appeal will be based on the argument that a San Diego federal judge who approved the settlement on March 31 erred because class members were not given a second chance to opt out of the case.

“The class members had a right to opt out of the settlement,” Friedman said. “The notice they received from the court promised them in no uncertain terms they had that right. Then, once the defendant got elected president, it became inconvenient to honor that promise.”

Rather than take the more than $15,000 she would get under the terms of the settlement, Simpson wants to take the president to trial individually and seek an award four times that amount or more, Friedman said.

Lawyers for the class members said Simpson and her lawyer mischaracterized language that went out in the class notices, which — when read in the correct context — stated that participants would be able to opt out of receiving a portion of the settlement, not leave the case entirely. By staying in the case, Simpson is bound by the settlement, they argue.

Jason Forge, one of the main lawyers in the class-action suit and settlement, said that the decision to appeal is wrong and could hurt other members of the class who will have to wait to collect their money from Trump.

“It’s the wrong fight against the wrong people for the wrong reason,” he said Monday. “My only real concern is we won’t have enough time to make it right for everyone. We have a number of senior citizen students here waiting for their money. And given the length of time that appeals can take, we may not be able to get that money to them before they die.”

The class-action lawsuits — two filed in San Diego and another in New York — claimed Trump University misled students into thinking it was an accredited university and conned people into signing up for the $35,000 “Gold Elite” program. The elite status paid for a yearlong mentorship and exclusive access to Trump’s resources, which students said were not provided for the most part.

Trump defended his program, saying it provided valuable training and garnered a 98% approval rating among students.

Friedman said Simpson regretted holding up settlement payments. “We feel terribly about the delay,” he said. “But she is not going to be guilted into changing her position.”

He said he planned to ask the appeals court for an expedited hearing schedule.

kristina.davis@sduniontribune.com

greg.moran@sduniontribune.com

Davis and Moran write for the San Diego Union-Tribune