WASHINGTON — A federal judge on Saturday threw out President Trump’s multibillion-dollar lawsuit against the Wall Street Journal and media mogul Rupert Murdoch over an article reporting on his ties to disgraced late financier Jeffrey Epstein.
U.S. District Judge Darrin Gayles in Miami ruled that the president did not prove the defendants made defamatory statements with actual malice. Gayles dismissed the suit with prejudice, meaning it cannot be refiled and the dismissal is permanent and incontrovertible.
The ruling said the lawsuit was “grasping at straws” as it attempted to “manufacture” flaws in the Journal’s investigative reporting.
The lawsuit was over an article the Journal published last year describing a sexually suggestive letter that the paper said bore Trump’s name and was included in a 2003 album compiled for Epstein’s 50th birthday.
The letter was reportedly collected by jailed British socialite and Epstein co-conspirator Ghislaine Maxwell as part of a birthday album for Epstein years before he was first arrested in 2006 and subsequently had a reported falling-out with Trump.
The letter bearing Trump’s name includes text framed by the outline of what appears to be a hand-drawn nude woman and ends with, “Happy Birthday — and may every day be another wonderful secret,” according to the newspaper.
Trump denied writing it and called the story “false, malicious, and defamatory.”
The lawsuit, filed in federal court in Miami, accused the paper and its reporters of having “knowingly and recklessly” published “numerous false, defamatory, and disparaging statements,” which, it alleged, caused “overwhelming financial and reputational harm” to the president.
Reporting from Sacramento — Are rich people fleeing California to escape astronomical state income taxes? That’s the word. But it’s fake news.
In fact, more wealthy people are moving to California than leaving, research indicates. It’s the poor and middle class who are departing.
It makes sense. If you’re getting rich in California and can afford to live comfortably here in this balmy climate, there’s little incentive to leave — except to stick it to the tax collector in Sacramento.
“If you’ve got your business here and you’re making money, it’s hard to leave,” says Allan Zaremberg, president of the California Chamber of Commerce.
“And if you’re making money in California, you’re still going to get taxed here even if you live in Texas,” he said. “You get taxed where you make the money, regardless of where you live.”
Loren Kaye, president of the California Foundation for Commerce and Education, a chamber affiliate, cautions: “You can’t shelter your income simply by moving out of state. If your business or work is in California, that’s where you’re taxed. California very aggressively collects taxes.”
But, he adds: “If you’re retired or living off of investments, that’s different.”
You can move to Nevada, where there’s no state income tax, and live off a California public pension without paying either Sacramento or Carson City.
Avoiding California’s highest-in-the-nation 13.3% income tax rate was just one of several reasons Harper signed with the Phillies. He also liked their hitter-friendly ballpark. And he felt comfortable playing in the National League East, where he has spent his entire major league career.
But Harper will save many millions in taxes by not playing for a California team, a strong inducement despite his hometown being nearby Las Vegas.
California’s income tax has become even more burdensome for the wealthy and many middle-class residents because of new federal so-called reforms. President Trump and the previous Republican Congress stripped our ability to deduct all state income and local property taxes on federal returns. There’s now a $10,000 limit.
Harper’s avoidance of this state seemed symbolic of the California tax-flight tale that has circulated for years. But apparently it’s mostly made up.
Sure, there are anecdotes galore. Everyone seems to know someone who has fled California to dodge its high taxes. But there’s no wholesale bolting of the rich.
“Substantially more rich people are moving into California than moving out,” says Cristobal Young, a Cornell University sociology professor. He teamed with others at Stanford University’s Center on Poverty and Inequality to write a research paper on “Millionaire Migration in California.”
“They want to be where the action is,” Young says. “There’s more opportunity in California. There are a lot of ways to make a lot of money in California, more than other places. A lot of that is tech, but it’s a diverse economy….
“People who want to make money tend to live where other high-income people are. It’s one thing to say, ‘I’m going to leave California to save money on taxes.’ But that means leaving clients, collaborators, investors, friends….
“It’s not that rich people are moving to Reno and Nevada,” Young adds. “They’re moving to San Francisco and making living costs miserable for a lot of people.
“California has a net out-migration of low-income folks who can’t afford to live in their state and are being pushed out by high-income homeowners. And there’s a whole other story of middle-class people struggling to pay their bills and the housing shortage hitting them hard.”
The Stanford report concludes that California has “consistently become a more attractive place for millionaires,” adding that perhaps this is because California has become “a winner-take-all economy.”
Similar findings have been reported by other organizations.
“Although California has had net out-migration among most demographic groups, it has gained among those with higher incomes ($110,000 per year or more) and higher levels of education (graduate degrees),” the state Legislative Analyst’s Office determined last year.
Next 10, a public policy think tank, found that “the main driver for net out-migration appears to be high housing costs since migration rates are highest for those at lower-wage levels…. The vast majority of people who moved out of California were concentrated in lower-skilled, lower-paying fields.”
State demographers, digging into federal census data, found that significantly more people earning above $125,000 were moving into California than were leaving. And more earning less than $75,000 were taking off.
In the January state budget document, there also was this observation: “Over time the state…has become more educated on average due to outward migration of less educated residents…and inward migration of more educated people.”
So the wealthy are not fleeing California in droves even though they’re being hammered by state income taxes. The top 5% of earners pays two-thirds of the tax. The bottom 80% pays less than 11%. That’s just bad tax policy because it leans too heavily on rich people’s capital gains that plummet during a recession.
Fortunately the rich are staying with us, fueling the economy and funding state government. And they keep arriving.
WASHINGTON — President Trump’s ambassador to Greece, Kimberly Guilfoyle, resigned on Tuesday after allegations of improper conduct but insisted she’ll “vigorously defend” herself.
Trump’s administration said earlier Tuesday it had asked Guilfoyle to leave her post after she faced severe criticism over allegations she engaged in improper and possibly illegal conduct before and during her tenure in Athens.
The announcement, after days of comments and speculation, came in response to a question to freshly minted White House press secretary Katie Zacharia at her first media briefing Tuesday morning. Zacharia said Guilfoyle “has been a wonderful asset to the team, and we wish her well.”
Guilfoyle’s departure comes after its possibility was previewed to the Associated Press over the weekend and Trump registered his unhappiness on Monday at reports about her alleged conduct.
“Well, we’re looking at it,” Trump told reporters at the White House when asked if he was considering firing Guilfoyle. “We’re not happy.”
Those comments came a day after the AP, citing a senior U.S. official, reported that Trump and Secretary of State Marco Rubio are “extremely pissed off” by Guilfoyle’s reported conduct and would likely decide on her future this week.
In a series of stories dating to late last month, The Wall Street Journal has reported questionable conduct by Guilfoyle, including an alleged threat to a host country official, accepting improper gifts and services and offering to use her influence inside the Republican administration in return for the payment of a large credit card bill.
White House press secretary Katie Zacharia speaks with reporters in the James Brady Press Briefing Room at the White House, Tuesday, Oct. 13, 2026, in Washington.
(Julia Demaree Nikhinson / Associated Press)
Guilfoyle addressed the allegations directly in a post on X, saying, “These allegations are false, and I intend to vigorously defend my name, my reputation, and my integrity.”
“I have dedicated my professional life to fighting for justice, standing up for what is right, and defending the values that make America exceptional,” she said. “I will not allow false accusations to define my decades of public service.”
In a statement released late Sunday, Guilfoyle’s lawyers denied she had done anything wrong and claimed that the money she was seeking from a Trump donor was payment for services — public appearances and speaking engagements that predate her ambassadorial nomination — that had not been paid.
The lawyers, David Schwartz and Jesse Binnall, also rejected allegations of impropriety related to Guilfoyle’s travel on private planes, saying that before every such trip she “sought, obtained and followed State Department guidance and followed the Department’s travel regulations.”
The allegations began surfacing weeks ago
After defending Guilfoyle following the first report, Rubio has declined to comment publicly on the growing allegations. Last week, Rubio said: “Our ambassador has been a strong ambassador here.”
But after another report appeared later, Rubio — speaking Thursday before leaving Athens — berated journalists for asking about the allegations. He said that he didn’t know if they were true and that he would not respond if he could not confirm them.
“You guys walk around thinking that because some source told you something and you reported it, it’s the gospel. It’s not the gospel. It’s not the gospel for me. That’s not the way we do things,” Rubio said at the foot of his plane as Guilfoyle, who was there to see him depart, looked on.
A second U.S. official, who also spoke on the condition of anonymity to discuss personnel matters, said the State Department’s inspector general was looking into the allegations, which first began surfacing in the Journal late last month and have since multiplied.
The second official could not say if a formal IG probe had begun. Inspectors general often conduct informal inquiries into complaints against staffers, and many times those inquiries do not result in a full-on investigation, which can result in disciplinary action up to and including dismissal.
There was no immediate response to Zacharia’s statement from the Greek government or Cabinet members.
Ahead of Tuesday’s announcement, Greek opposition parties had called on the Foreign Ministry to summon Guilfoyle to respond to the allegations made against her. “This, most importantly, is an issue of national dignity,” Sia Anagnostopoulou, a former deputy foreign minister, said in parliament Friday. Foreign Minister Giorgos Gerapetritis responded that Guilfoyle had been treated “the same way as every other ambassador” and argued that an official summons had not been necessary.
Hours earlier, Guilfoyle had posted photos of her meeting this week with the Spanish ambassador to Athens as well as birthday wishes for Lara Trump, the president’s daughter-in-law, accompanied by Dua Lipa’s “Dance the Night,” from the 2023 soundtrack of the movie “Barbie.”
Democrats call for an investigation
The top two Democrats on the House Foreign Affairs and Senate Foreign Relations committees, Rep. Gregory Meeks of New York and Sen. Jeanne Shaheen of New Hampshire, as well as the ranking member on the House Committee for Oversight and Government Reform, Rep. Robert Garcia, D-Calif., have already called for an investigation into Guilfoyle.
Since late September, the Journal has detailed numerous accounts of questionable conduct by Guilfoyle. Its first report said that she had told guests at a reception that the United States could undermine the Greek government if it chose to, promoted the business interests of one particular Greek construction and energy company and allowed its lobbyist into private diplomatic meetings.
While Rubio was in Athens, the Journal reported — citing text messages — that Guilfoyle had asked a Trump donor and supporter to pay a $100,000 credit card bill just before her confirmation hearing, promising him access to administration officials if he did.
The Journal then reported that Guilfoyle had been enraged about not being invited to a Greek-themed event at the World Economic Forum in Davos, Switzerland, earlier this year and demanded to attend while boasting about luxury travel to France with energy company executives.
Another report, from the British tabloid The Daily Mail, said that Guilfoyle had alienated staff at the U.S. Embassy in Athens and had pushed the bounds of behavior appropriate for the top representative of the U.S. government to Greece.
Guilfoyle is a former Fox News Channel host and California prosecutor who was once married to California’s Democratic Gov. Gavin Newsom and was engaged to Trump’s son Donald Jr.
Lee writes for the Associated Press. AP journalist Derek Gatapoulos in Athens contributed to this report.
