President Donald Trump on Monday moved to withdraw his $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns after reports that a resolution of the case was close at hand. The disclosure was made in a filing in federal court in Florida, where the lawsuit was filed.
Earlier in the day, world shares mostly retreated and oil prices jumped after Trump warned Tehran that the “clock is ticking” as U.S.-Iran negotiations over a permanent end to the war stall. U.S. futures fell and markets in Japan and South Korea pulled back from their records.
Justice Department announces $1.7B fund to compensate Trump allies in deal to drop IRS suit
The Trump administration said Monday that it’s creating a $1.7 billion fund to compensate prosecuted allies of the Republican president after he moved to drop his lawsuit against the Internal Revenue Service.
The “Anti-Weaponization Fund” was announced by the Justice Department as part of a deal to resolve President Trump’s case over the leak of his tax returns.
Democrats and government watchdogs immediately pledged to fight what they called a “corrupt” and unprecedented resolution.
Trump’s lawsuit followed the leak of tax returns
Trump filed the lawsuit earlier this year in a Florida federal court, alleging a previous leak of his and the Trump Organization’s confidential tax records caused “reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other Plaintiffs’ public standing.”
The president’s sons, Donald Trump Jr. and Eric Trump, are also named plaintiffs in the suit.
In 2024, former IRS contractor Charles Edward Littlejohn — who worked for Booz Allen Hamilton, a defense and national security tech firm — was sentenced to five years in prison after pleading guilty to leaking tax information about Trump and others to two news outlets between 2018 and 2020.
Source: WPLG
