Federal Judge Kathleen Williams on Monday invalidated the settlement reached between the government and Donald Trump to end a $10 billion lawsuit related to the leak of his tax returns, ruling that the proceedings had been misused for illegitimate purposes.

A federal judge nullifies the Trump-IRS agreement and sanctions his lawyers.
A federal judge nullifies the Trump-IRS agreement and sanctions his lawyers.

Federal Judge Kathleen Williams on Monday invalidated the agreement reached between the government and Donald Trump to close a $10 billion lawsuit related to the leak of his tax returns, believing that the proceedings had been misused for illegitimate purposes.

The agreement had been criticized since its conclusion: Judge Kathleen Williams of the U.S. District Court for the Southern District of Florida has now overturned it. In a ruling issued Monday, she determined that the lawsuit filed by Donald Trump and his sons against the U.S. Internal Revenue Service (IRS) was brought for an "improper purpose."

The dispute concerned the leak of the president's tax returns. Trump and his sons were seeking $10 billion. The government, without ever addressing the substance of the complaint, announced an out-of-court settlement under which a $1,8 billion fund would be created to compensate the victims of what the administration described as the "weaponization" of the state, in other words, the political manipulation of federal agencies.

The agreement also provided immunity from tax audits for the president, his family, and related entities. Judge Williams sanctioned the president's lawyers, finding that they had sought to use the legal process to fabricate a settlement favorable to their client.

His decision blocks the entire agreement negotiated earlier this year between government representatives and Trump's advisors.

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