A federal appeals court has upheld a ruling that President Trump conspired with the Department of Justice to pursue—and later drop—a high-stakes lawsuit against the IRS, seeking billions in damages. The decision follows a lower court judge’s finding that the case was brought in bad faith, raising serious questions about the motives behind the legal action. Legal experts are now analyzing whether the ruling could set a precedent for how future lawsuits involving government agencies are scrutinized. The case marks another legal challenge tied to Trump’s administration, with implications for transparency and accountability in federal litigation.


An appeals court Tuesday sided with a lower court judge who determined President Trump colluded with the Department of Justice (DOJ) in bringing and later dismissing a case seeking $10 billion in damages from the IRS. Florida-based U.S. District Judge Kathleen Williams in July found that the lawsuit that served as the hook for the...