Federal Judge Slams Trump $10B Suit — Lawyers Sanctioned in Stunning Order

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News (1 / 1) 14.07.2026 01:01 / Frank

In a dramatic legal twist a judge says President Trump’s $10b lawsuit against the IRS and Treasury was never a true courtroom fight — and lawyers paid the price. Read on to discover the full story!

Judge: Case Was 'Collusive' and 'Non-Adversarial'

A 56-page order found the January 2026 suit, brought after former IRS contractor Charles Littlejohn leaked tax records, was filed for an improper purpose. The court concluded there was no real adversarial dispute under Article III and labeled the litigation collusive.

Controversial Settlement Details

Documents show the proposed resolution would have included a government apology and creation of a $1.776 billion "Anti-Weaponization Fund" funded by the Treasury's Judgment Fund. The judge raised concerns that the suit served to legitimize broad immunity protections and public payouts.