Trump Family’s Effort to Compel Arbitration of Fraud Case Denied
- April 9, 2020
On April 8, 2020, a federal court denied the attempt of Donald Trump, his immediate family, and The Trump Corporation to compel arbitration of the fraud case pending against them in the Southern District of New York. The case, filed in the fall of 2018, alleges the Trumps defrauded investors into purchasing memberships in a multi-level marketing scheme called ACN. The Trumps had argued that the court should stay the fraud case in favor of individual arbitration based on agreements that the investors had signed with ACN. The court denied the motion on the grounds that the Trumps and ACN were never sufficiently connected such that the investors would have understood that any of their contractual obligations with ACN would correspond to obligations with the Trumps.