Source: Fortune.com
Summary
President Donald Trump’s lawyers are in talks with the IRS to resolve a $10 billion lawsuit over the leak of his tax information to news outlets between 2018 and 2020. The lawsuit, filed in a Florida federal court, alleges that the leak caused “reputational and financial harm” to Trump and the Trump Organization. Trump’s sons, Donald Trump Jr. and Eric Trump, are also plaintiffs in the suit. The IRS has asked for a 90-day pause in the case to explore a possible settlement. Ethics experts have raised questions about the propriety of the lawsuit, citing conflicts of interest and the potential for “collusive litigation tactics.”
Our Reading
The announcement sounds familiar.
Trump’s lawsuit against the IRS is a textbook example of a “scorched-earth litigation” strategy. The president is using the lawsuit to try to control the narrative and shift attention away from the substance of the tax leaks. The fact that Trump’s sons are also plaintiffs in the suit raises questions about the potential for family interests to influence the litigation. The IRS’s request for a 90-day pause in the case suggests that the agency may be looking for a way to settle the lawsuit without admitting liability. Trump’s statement that he would donate any damages to charity raises eyebrows, given his history of using charitable donations as a way to boost his public image.
The numbers tell one story, but the real story is about the use of litigation as a tool for reputation management.
Author: Evan Null
