settlement

WASHINGTON — The U.S. government will permanently drop tax claims against President Trump, according to a settlement document that is part of a deal to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

As part of the settlement agreement, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues, according to a one-page document posted to the Justice Department’s website on Tuesday.

The settlement, which marks an extraordinary use of executive power, goes beyond resolving litigation and effectively helps shield the president from further examination of his finances and legal conduct.

The move comes after the Trump administration announced Monday the creation of a nearly $1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as “corrupt” and unconstitutional.

The “Anti-Weaponization Fund” of $1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Atty. Gen. Todd Blanche called “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”

Blanche, who was grilled by lawmakers on Capitol Hill on Tuesday, would not rule out the possibility that people who carried out violence during the Jan. 6, 2021, riot at the U.S. Capitol will be considered for payouts from the new fund.

Democratic lawmakers and ethics watchdogs slammed the creation of the fund, saying it was corrupt, opaque and had the potential to become a “slush fund” for the president and his allies.

Sen. Ron Wyden, D-Ore., said Democrats intend to “fight every element of this self-dealing settlement.”

“Not only is this another heinously corrupt act by the most corrupt administration in history, it’s clearly a violation of the law that prohibits interference by executive branch officials in IRS audits.”

The fund was announced after Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization agreed to drop their lawsuit against the IRS and the Treasury Department. The lawsuit alleged that a leak of confidential tax records caused them reputational and financial harm and negatively affected their public standing, among other allegations.

According to a separate settlement agreement posted to the Justice Department website Monday, Trump will receive a formal apology from the U.S. government but “will not receive any monetary payment or damages of any kind,” from the settlement.

Trump told reporters at the White House on Monday that the fund is dedicated to “reimbursing people who were horribly treated.”

Hussein writes for the Associated Press.

May 15 (UPI) — Texas Children’s Hospital plans to create the first “detransition clinic” in the United States as part of a settlement with the state for provided transgender care, officials announced Friday.

Texas Attorney General Ken Paxton announced the settlement, which will also require the hospital to fire and revoke the medical privileges of doctors, as well as pay a $10 million fine.

The hospital will make care at the clinic free of charge for its first five years and offer services for children to detransition to their gender assigned at birth.

Paxton investigated the Houston-based hospital in 2023 for the transgender care services it offered at the same time the state legislature was outlawing gender-affirming care for children.

“I applaud Texas Children’s Hospital for changing course and committing to being part of the solution by agreeing to form a first-of-its kind Detransition Clinic that will provide free care to those who have been victimized by twisted, morally bankrupt transgender ideology,” Paxton said in a statement.

The settlement, he said, is meant to reverse damage caused by “ideologically motivated physicians who harmed patients with their transition care, which the attorney general’s office alleged included the use of false diagnosis codes.

The hospital, in its own statement, said that it had spent the past three years cooperating with the investigation, “navigating an unconscionable campaign of mistrusts and mischaracterizations of gender affirming care.”

It said that multiple internal and external investigations support that the hospital has been compliant with all laws — before and after the state ban on transition care.

“Today, we made the difficult decision to settle with the Texas attorney general and the Department of Justice, closing a chapter that has been wrought with falsehoods and distractions,” the hospital said.

“To be clear — we are settling to protect our resources from endless and costly litigation,” it said. “This settlement will allow us to redirect those precious resources to focus on life-saving care and groundbreaking discoveries of our exceptional clinicians and scientists.”

May 4 (UPI) — Elon Musk on Monday settled a lawsuit filed against him by the Securities and Exchange Commission for $1.5 million after the agency accused him of breaking securities laws.

The SEC alleged in January 2025 that Musk cost Twitter shareholders $150 million because he delayed disclosing his purchase of more than 5% of shares in the company within the 10 days required by law.

Musk’s purchase of Twitter led to a series of lawsuits because of how he purchased the company, which has since been renamed to X, which saw him become its biggest shareholder before he launched a successful hostile takeover, The Washington Post reported.

In the settlement, which still needs to be approved by a judge, would see Musk pay a $1.5 million penalty while allowing him to admit no wrongdoing, CNBC reported.

“A trust vehicle has agreed to a small fine for being late on one filing,” Musk attorney Alex Spiro said of the agreement, which will see one of his client’s revocable trusts paying the fine.

Musk made a play to buy Twitter in 2022, first buy purchasing more than 5% of the company, which he did not disclose and was the reason the SEC filed suit, which allowed him to put other investors in a poor position before he launched his takeover.

April 28 (UPI) — A federal judge on Tuesday sentenced Purdue Pharma to pay more than $5 billion in criminal penalties, clearing the way for the OxyContin maker to complete its bankruptcy settlement agreement and resolve thousands of opioid-related lawsuits filed against it by states, local governments, tribes and other plaintiffs.

The sentence, handed down by a federal court in Newark, N.J., comes after Purdue pleaded guilty in October 2020 to charges over its role in the opioid crisis.

Prosecutors said the Sackler family-owned company worsened the crisis that has killed hundreds of thousands across the United States by aggressively marketing its addictive drugs while downplaying the risks of overdose and addiction.

Thousands of lawsuits have been filed against the company over its role in the crisis, and Purdue filed for Chapter 11 bankruptcy in 2019 as part of an agreement to resolve them.

With Tuesday’s sentence, Purdue can be dissolved and replaced by the public benefit company Knoa Pharma, which will receive the assets and expertise of the old company to produce addiction treatments and overdose-reversal medications.

“Purdue Pharma put profits over patient health and safety,” Acting Attorney General Todd Blanche said in a statement announcing the sentence handed down by a federal court in Newark, N.J.

“The company willfully rejected the law and ignored the diversion of their highly addictive prescription drugs.”

About 806,000 people died from an opioid overdose from 1999 to 2023, according to the U.S. Centers for Disease Control and Prevention.

Court documents accused Purdue of illegally marketing its opioids from 2007 to 2017, generating billions in profit.

The penalties announced Tuesday include a $3.544 billion criminal fine and an additional $2 billion in criminal forfeiture, though the Justice Department said it will credit up to $1.775 billion against the forfeiture amount based on the value conferred to state, local and tribal governments through its bankruptcy.

“No penalty can undo the widespread devastation Purdue has inflicted, but today’s sentence serves long-overdue accountability for its reckless and unlawful conduct,” Inspector General T. March Bell of the U.S. Department of Health and Human Services said in a statement.