Key facts
- A federal judge voided Donald Trump's $10 billion lawsuit against the IRS.
- The judge ruled the lawsuit was filed for an "improper purpose" and to manipulate the judicial process.
- The ruling nullified a settlement agreement that would have granted tax audit immunity.
- Judge Kathleen Williams sanctioned two of Trump's personal attorneys and referred one for disciplinary action.
- The court found the lawsuit lacked a genuine controversy because Trump controlled the Treasury department.
A federal judge on Monday delivered a scathing rebuke to President Donald Trump's $10 billion lawsuit against the IRS, ruling that it was manufactured to justify its settlement and lacked a genuine purpose.
US District Judge Kathleen Williams stated in a 56-page ruling that the lawsuit was "not brought to vindicate rights; it was brought to manipulate the judicial process." The settlement included a multibillion-dollar "anti-weaponization" fund for political allies and aimed to shield individuals and entities affiliated with Trump from IRS scrutiny.
The judge found the lawsuit lacked a genuine controversy because Trump, as president, controlled the Treasury department. She suggested that acting Attorney General Todd Blanche and Associate Attorney General Stan Woodward might face disciplinary action from state bar associations. Furthermore, Williams sanctioned two of Trump's personal attorneys, Alejandro Brito and Daniel Epstein, referring Brito for potential discipline and banning Epstein from practicing in the Southern District of Florida for at least a year.
The ruling nullified the deal and barred the parties from citing it as evidence of a formal settlement. The Justice Department and the White House did not immediately comment, with the White House referring questions to Trump's legal team, who stated the lawsuit was a response to the "wrongful" leak of Trump's tax returns.