TechFlow reports that on May 30, according to The Washington Post, a U.S. federal judge ordered Donald Trump and his family’s legal team on May 29 to explain a controversial settlement agreement related to Trump’s prior lawsuit against the Internal Revenue Service (IRS), which established an approximately $1.8 billion compensation fund.
In the ruling, the judge noted that the agreement faces “serious allegations of fraud” and demanded that Trump’s side justify why this arrangement constitutes a reasonable litigation resolution—and why it should not be deemed legally defective.
According to previously disclosed documents, Trump has reached a settlement with the federal government regarding the lawsuit against the IRS. In addition to establishing the compensation fund, the agreement includes provisions restricting the IRS from further investigating or auditing certain pre-existing tax returns. The court has not yet issued a final ruling on the agreement’s legality.
