Federal judges rejected the former president’s effort to force arbitration in a case alleging misleading marketing for the business services firm ACN
In this Saturday, July 24, 2021, photo former President Donald Trump speaks to supporters at a Turning Point Action gathering in Phoenix. | Ross D. Franklin, File/AP PhotoA federal appeals court has rejected an attempt by former President Donald Trump and three of his children to force arbitration in a class-action lawsuit accusing him of fraud during the decade he spent as a pitchman for ACN, a business services company featured on “Celebrity Apprentice.
A federal lawsuit filed against the Trumps and their company in 2018 accused the real estate tycoon of repeatedly making false public claims about ACN and failing to disclose that he was paid millions of dollars to endorse the multilevel marketing company. The plaintiffs in the suit say they signed up to sell ACN’s services and paid significant sums of money for the opportunity but saw virtually no income.
The 3-0 decision from the 2nd Circuit said that third parties can sometimes avail themselves of arbitration, which is generally seen as friendlier to large businesses than the courts, but that Trump’s role here did not call for applying the arbitration clause to cover him, his children or his company.
Indeed, the contracts signed by those who agreed to market for ACN said that the agreement was only with ACN and not any of its service providers or “other party with whom ACN transacts or contracts business.”
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