Judge rules Trump must face lawsuit over alleged multilevel marketing scheme
President Donald Trump and his associates have faced not only an abundance of criminal investigations, but civil probes and lawsuits as well. And on Wednesday, a judge in Manhattan ruled that an anti-Trump lawsuit alleging deceptive and unfair business practices can go forward.
On Wednesday, the major media were dominated by coverage of former Special Counsel Robert Mueller’s public testimony before Congress. But there was other Trump-related legal news as well, including U.S. District Judge Lorna Schofield’s ruling that claims of unfair competition, fraud and deceptive trade practices can continue in a class-action lawsuit.
In the lawsuit, the plaintiffs allege that they were scammed by Trump and three of his children when they spent money on multilevel marketing ventures and a live seminar program. The program, according to Bloomberg News, promised to teach participants Trump’s “secrets to success” in real estate — and the plaintiffs allege that it didn’t make good on its promise.
Schofield, however, dismissed federal racketeering allegations from the lawsuit, which reduces the amount of damages the plaintiffs could obtain if they are ultimately victorious in the case Doe v. Trump Corp. Although attorney Joanna Hendon (who represents the Trumps) was hoping that Schofield would throw out the lawsuit altogether, she said she was “delighted with” the judge’s decision. And attorney Roberta Kaplan, who represents the plaintiffs, said, “We are pleased that the court has denied defendants’ motion to dismiss.”