A federal judge on Monday ruled that President Trump’s lawsuit against the Internal Revenue Service over leaked tax returns was filed for an improper purpose, accusing those involved of using the court system to legitimize a settlement agreement.
U.S. District Judge Kathleen Williams said the $10 billion complaint was an attempt to validate a deal that provided Trump protections from tax audits and created a fund to compensate allies who claimed they were unfairly targeted.
Williams said the case lacked a legitimate dispute because Trump sued a federal agency under his own administration, allowing the parties to bypass the requirement that opposing sides have conflicting interests.
The judge referred one Trump attorney for possible disciplinary review and sanctioned another lawyer involved in the case. She also criticized Acting Attorney General Todd Blanche’s role, writing that the lawsuit appeared designed to provide legal legitimacy to an agreement involving taxpayer funds and benefits for people connected to the president.
The ruling’s practical impact may be limited since the administration has said the $1.776 billion Anti-Weaponization Fund has been abandoned, but the decision renews scrutiny of Blanche ahead of his Senate confirmation hearing.
