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Judge Rules Trump’s $10 Billion IRS Lawsuit Was Filed for an Improper Purpose

A federal judge found the suit was used to give judicial cover to a disputed Justice Department agreement and barred the parties from citing that deal in any official proceeding.

Overview

  • U.S. District Judge Kathleen M. Williams issued a 56-page order on Monday finding President Trump’s January $10 billion suit against the IRS was brought in bad faith to secure judicial legitimacy for a separate agreement.
  • Williams concluded there was never a true case or controversy because the president controls the agencies sued, and she said the litigation was used to seek immunity for Trump, his family, and affiliated entities and to justify a large compensation fund.
  • The court imposed sanctions, referred Trump lawyer Alejandro Brito to the Florida Bar, barred Daniel Z. Epstein from pro hac vice admission in the Southern District of Florida for one year, and ordered the opinion sent to bar associations reviewing DOJ officials.
  • The ruling prohibits Trump, the Trump Organization, the government, and their lawyers from citing or relying on the purported settlement as evidence of a valid deal in any judicial, administrative, regulatory, arbitration, or other official proceeding.
  • The disputed $1.776–$1.8 billion ‘Anti-Weaponization’ fund had been publicly abandoned after bipartisan outcry, but Williams’s order raises fresh questions about the DOJ approvals, possible bar investigations, and whether the department will appeal.