The Guardian
·Jul 2026
US judge nullifies Trump deal to resolve IRS lawsuit in scathing ruling
A federal judge voided an agreement between the government and Donald Trump that sought to settle a $10bn lawsuit over leaked tax returns, ruling the case was filed for improper purposes and lacked a real legal dispute because Trump controlled the Treasury Department. Judge Kathleen Williams sanctioned several of Trump's lawyers, referred some for disciplinary action, and barred one from practicing in the district for a year. She criticized the settlement’s tax immunity provisions and the creation of a proposed $1.8bn fund, citing collusion between the parties. The ruling prevents any use of the invalidated settlement and orders parties to cover legal fees for third‑party briefs, while pressure mounts for Congress to take action to prevent similar attempts at presidential self‑dealing.