Judge voids Trump's $1.8 billion IRS settlement, cites improper purpose
A federal judge has voided a $1.8 billion settlement the Justice Department reached with the IRS on behalf of President Trump, ruling the underlying lawsuit was filed for an improper purpose. The judge also referred Trump's lawyer to the bar for possible discipline.
A federal judge has thrown out a $1.8 billion settlement the Justice Department negotiated with the Internal Revenue Service on behalf of President Donald Trump, ruling that the underlying lawsuit was filed for an improper purpose rather than to resolve a genuine dispute.
The settlement had created a so-called "lawfare" fund intended to compensate parties tied to the case; that fund has since been scrapped following the ruling. The judge also referred Trump's personal lawyer to the state bar for a professional-conduct review over how the case was handled.
The decision adds to a string of legal setbacks for the administration this year and raises fresh questions about oversight of settlements struck between federal agencies and the executive branch. The White House has not said whether it intends to appeal the ruling.
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