2nd Circ. Says Trumps Can't Arbitrate Investor Fraud Suit

By Caleb Drickey (July 28, 2021, 7:04 PM EDT) -- The Second Circuit on Wednesday ruled that former President Donald Trump and the Trump Organization cannot arbitrate claims that they duped unsuspecting investors into buying into a fruitless multilevel marketing scheme.

In a published opinion, the Second Circuit panel unanimously upheld a lower court's determination that neither Trump, his children Don Jr., Eric and Ivanka, nor the Trump Corporation were signatories to arbitration agreements between ACN Opportunity and its salespeople, and therefore could not arbitrate claims that the family lied about accepting millions of dollars in exchange for public endorsements.

"Where ... the nonsignatory [to an arbitration agreement] is alleged to be...

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