INTO THE LIGHT

Judge Tosses Trump Family’s Attempt to Hide Pyramid Scheme Lawsuit From Public

A judge ruled Wednesday that proceedings in the case must play out in open court, dashing the ex-president’s bid for secret arbitration.

A circuit court judge on Wednesday shot down an attempt by former President Donald Trump and three of his four adult children to force a class action out of open court and into arbitration, which would have kept the proceedings—involving allegations of fraud related to an alleged pyramid scheme promoted by Trump—hidden from public view. “The truth or falsity of the plaintiffs’ allegations is not before us,” Judge Robert D. Sack wrote in a 43-page opinion. “We neither express nor imply any views with respect to them. The only question before us is whether this case should be resolved before the district court or an arbitrator.”

Originally filed in 2018, the lawsuit alleges that the Trump family promoted a multi-level marketing “get-rich-quick scheme” that conned victims into forking over “hundreds or thousands of dollars” they never had a chance of recouping. The ex-president, along with daughter Ivanka and sons Don Jr. and Eric, allegedly insisted that investing in the venture, known as ACN Opportunity, LLC, “offered a reasonable probability of commercial success,” according to the lawsuit. At the same time, it says the Trumps, who allegedly collected millions in endorsement fees from ACN, “failed to conduct due diligence about the likelihood of economic losses and the slim probability of commercial success from such schemes.”