Fraudulent marketing lawsuit against Trump is dismissed
By Kara Scannell, CNN
(CNN) — A federal judge on Friday dismissed a lawsuit alleging Donald Trump was involved with a fraudulent marketing company several weeks before it was set to go to trial.
The lawsuit, which was filed in 2018, alleges that in exchange for “secret” payments totaling millions of dollars, Trump used his reality TV show “The Celebrity Apprentice” and other promotional events as vehicles to boost ACN Opportunity, a telecommunications marketing company linked to a nonprofit that used Trump’s brand to appeal to teens.
The lawsuit alleges the scheme preyed on investors – including by recruiting teenagers, promising them success as “The Trumps of Tomorrow.”
District Judge Lorna Schofield said the case, which was previously denied class action status, would be better tried in state court than in federal court and said the plaintiffs are permitted to file their claims there.
“Because this case now involves only three individual plaintiffs asserting claims under their respective states’ laws, it is not better suited for adjudication in this court than in state court, particularly those of California, Maryland and Pennsylvania,” the judge wrote. “Even though discovery has been completed and certain motions decided, retaining jurisdiction would not serve economy or convenience,” the order said.
Clifford Robert, an attorney for the former president, said in a statement Friday evening, “Having already declined class certification, we are pleased that the Court dismissed the nominal claims of the three remaining plaintiffs.”
Trump and his adult sons, who were initially named in the lawsuit, were deposed as part of the lawsuit. The parties later agreed to drop the claims against the sons. The case was expected to go to trial on January 29.
“Today’s decision addresses only where – not if – plaintiffs’ claims should be brought to trial. We intend to continue the fight, and our brave clients look forward to their day in court,” said Roberta Kaplan, an attorney representing the plaintiffs.
This story has been updated with additional developments.
CNN’s Piper Hudspeth Blackburn contributed to this report.
The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
