A federal judge ruled that President Donald Trump’s settlement with the Justice Department over the leak of his tax returns stemmed from a lawsuit that lacked a genuine legal dispute and was used to legitimize the agreement in court.
Judge Says Lawsuit Lacked Genuine Dispute
On Monday, U.S. District Judge Kathleen Williams issued a 56-page ruling finding that Trump and the Justice Department were never truly adverse parties in the lawsuit, concluding that the case was filed to secure judicial approval of a settlement rather than to resolve an actual controversy.
“In sum, the facts before this Court demonstrate there was never adverseness between the Parties; there was never a case or controversy,” Williams wrote.
She added that the lawsuit was “brought to manipulate the judicial process.”
Trump had sued the IRS for $10 billion over the disclosure of his tax returns.
The parties later reached a settlement tied to a proposed $1.776 billion “anti-weaponization” fund for individuals claiming government misconduct.
Acting Attorney General Todd Blanche also signed a memo barring future government actions involving Trump’s past tax returns, businesses and family members.
Williams called the lawsuit “brought for an improper purpose—to gain the imprimatur of judicial legitimacy for a ‘settlement’ that had no viable basis in law or fact.”
The judge sanctioned Trump’s attorneys, referred lawyer Alejandro Brito to the Florida Bar for possible disciplinary action and directed the court clerk to notify bar authorities overseeing Blanche and Associate Attorney General Stanley Woodward.
DOJ did not immediately respond to Benzinga’s request for comments.
Trump DOJ Faces Legal And Political Challenges
Earlier this month, Sen. Elizabeth Warren (D-Mass.) criticized the Trump administration’s Justice Department over a $3.3 million settlement with egg producers accused of price coordination, calling it too lenient and a failure to hold companies accountable for rising grocery costs.
Last month, the administration also abandoned a proposed $1.8 billion “anti-weaponization” compensation fund after lawmakers, courts and critics raised concerns about oversight and potential payouts to individuals involved in the Jan. 6 Capitol attack.
Earlier, retired judges urged a court to reopen Trump’s dismissed IRS lawsuit, citing questions over the settlement process.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Robert V Schwemmer
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