President-elect Donald Trump has agreed to pay $US25 million ($A34 million) to settle several lawsuits alleging his now-defunct school for real estate investors defrauded students who paid up to $US35,000 to enroll in Trump University programs.
If approved, the deal announced by New York Attorney General Eric Schneiderman on Friday would settle a lawsuit he filed three years ago and two class-action suits filed in California on behalf of former students.
The suits alleged Trump University failed to deliver on its promise to teach success in real estate. They accused the program of misleading students by calling itself a university when it was not an accredited school and by saying Trump "hand-picked" instructors.
Messages left with several of Trump's attorneys and a spokeswoman were not returned on Friday.
Trump has denied the allegations and said during the campaign he would not settle. He told supporters at a May rally he would come to San Diego to testify after winning the presidency.
"I could have settled this case numerous times but I don't want to settle cases when we're right. I don't believe in it. And when you start settling cases, you know what happens? Everybody sues you because you get known as a settler. One thing about me, I am not known as a settler," Trump said at the time.
The deal does not require Trump to acknowledge wrongdoing.
Schneiderman said the $US25 million to be paid by Trump or one of his business entities includes restitution for victims and $US1 million in penalties to the state.
Trump "fought us every step of the way, filing baseless charges and fruitless appeals and refusing to settle for even modest amounts of compensation for the victims of his phony university. Today, that all changes," Schneiderman said in a statement.
He called the settlement "a stunning reversal by Donald Trump and a major victory for the over 6000 victims of his fraudulent university."
A federal judge in California had been set Friday to consider arguments on Trump's latest request to delay a trial until after Trump's inauguration on January 20. After the settlement was announced, the trial was cancelled.
