NEW YORK, July 28 (Reuters) – A federal appeals court said former U.S. President Donald Trump and his adult children cannot move into arbitration a fraud lawsuit accusing them of exploiting their family name to promote a marketing scam targeting the poor and working class.
The 2nd U.S. Circuit Court of Appeals in Manhattan said the plaintiffs’ agreements to arbitrate claims against the multi-level marketing company American Communications Network did not extend to the Trumps, who had not signed those agreements.
Lawyers for the Trump family did not immediately respond to requests for comment on Wednesday’s 3-0 decision.
Four plaintiffs in the proposed class action accused Trump, his children Donald Jr., Eric and Ivanka, and an affiliate of the Trump Organization of promoting ACN in exchange for millions of dollars in secret payments from 2005 to 2015.
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Source: Reuters, Jonathan Stempel