A U.S. District Judge ruled that former President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service over leaked tax returns was filed for an improper purpose. The judge referred one of Trump’s lawyers for potential disciplinary action and described the complaint as an exercise in self-dealing, according to fortune.com.
Judge Kathleen Williams criticized Trump and his legal team for manipulating the court system by suing a federal agency under his control, bypassing the requirement that parties in a lawsuit must have adverse interests. The lawsuit had ended in a settlement granting Trump immunity from tax audits and establishing a $1.776 billion fund to compensate Trump allies who claimed unjust persecution.
Williams, appointed by President Barack Obama, stopped short of voiding the deal shielding Trump from tax scrutiny but stated the government cannot claim the agreement resulted from a legitimate legal process. She questioned whether executive branch actors could privately agree to grant themselves and former clients blanket immunities and billions in tax monies through a court proceeding, concluding that they could not.
The ruling came just ahead of a key confirmation hearing, underscoring the legal challenges surrounding the settlement and Trump’s tax-related immunity. The judge’s decision highlights ongoing scrutiny of the legal tactics used in the case, as detailed by fortune.com.