A federal judge has ruled that President Donald Trump's lawsuit against the Internal Revenue Service was filed for an improper purpose and has invalidated the resulting settlement agreement. Judge Kathleen M. Williams, of the US District Court in Miami, determined on Monday that the January 2026 action lacked any genuine adversity between the parties and amounted to an attempt to manipulate the courts to legitimise a controversial deal.
The settlement, concluded in May, established a fund of $1.8 billion (£1.3 billion) from public funds, offered a government apology and granted broad protections to Trump and his associates from IRS investigations. The ruling came after a group of former federal judges raised serious questions about the legitimacy of the process and petitioned successfully for the case to be reopened.
