Donald Trump has settled three Trump University lawsuits for $25m, the New York Attorney General has announced.
The US president-elect was being sued by former students who paid $35,000 (£28,000) for real estate "secrets" from his "hand-picked" instructors.
Mr Trump was criticised as a candidate for saying that the California judge hearing the case could not be impartial because he is of Mexican heritage.
The businessman faced three fraud lawsuits in California and New York.
A trial in one of the cases had been due to begin in San Diego on 28 November, despite efforts by Mr Trump's lawyers to delay the case.
Attorney General Eric T. Schneiderman said in a statement: "Today's $25 million settlement agreement is a stunning reversal by Donald Trump and a major victory for the over 6,000 victims of his fraudulent university.
"The victims of Trump University have waited years for today's result and I am pleased that their patience - and persistence - will be rewarded by this $25 million settlement."
Schneiderman had sought a $40m (£32m) payout from Mr Trump over the university, which closed in 2010.
He called Trump University a "fraud from beginning to end" in July, adding that the organisation used "false promises to prey on desperate people".
US District Judge Gonzalo Curiel, who is presiding over the two California cases, had been urging both sides to settle out of court.
Mr Trump repeatedly claimed during his campaign that he would not settle the class-action lawsuits.
"I will win the Trump University case. I already am, as far as I'm concerned," Mr Trump said in June.
"I could settle that case. I could have settled that case. I just choose not to."
Mr Trump would not admit any wrongdoing in the settlement, a source familiar with the settlement told the BBC earlier on Friday, adding that it is a "180 degree reversal" for the president-elect.
