You've got to hand it to President Donald Trump and his family; they don't ever think small. On Friday, we learned that President Trump and his sons, Donald Trump Jr. and Eric Trump, along with the Trump Organization, have filed a lawsuit with the United States District Court in the Southern District of Florida against the Internal Revenue Service (IRS) and the United States Department of the Treasury. The Trumps are seeking $50 billion — that's billion, with a "B" — for failing to prevent the leaking of Trump family financial records.
President Donald Trump, his eldest two sons and the Trump organization have filed a lawsuit against the IRS, seeking at least $10 billion in damages for failing to prevent the leaking of their financial data in 2019 and 2020.
Charles “Chaz” Littlejohn, a former employee of Booz Allen Hamilton, illegally leaked thousands of wealthy clients’ confidential tax filings, including the president’s, to media outlets during those years. Booz Allen contracted with the IRS at the time and the lawsuit alleges that Littlejohn was able to obtain the records because the IRS did not ensure proper security measures were in place.
Littlejohn was convicted of one count of unauthorized disclosure of tax information and is currently serving a five-year sentence in a federal prison.
The lawsuit was reportedly filed on Thursday. The contracted firm in question, Booz Allen Hamilton, has already paid a price, losing millions in government contracts:
The Treasury Department also cut ties with the consulting firm earlier this week, cancelling millions in contracts and saying it was also partly responsible for Littlejohn’s crimes. Treasury Secretary Scott Bessent said Booz Allen also “failed to implement adequate safeguards to protect sensitive data” that Littlejohn accessed.
The filing disputes that Trump’s tax documents included “versions of fraud,” as ProPublica reported based on the files it received from Littlejohn, and cites “significant and irreparable harm to the plaintiffs.”
“Defendants have caused plaintiffs reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other plaintiffs’ public standing,” the complaint reads.
The complaint claims that the IRS enabled Littlejohn in that he was "...granted access to unmasked taxpayer data," and that he "...was authorized, under 26 U.S.C. § 6103(n) to access vast amounts of unmasked taxpayer data, including tax returns and return information, on IRS databases," and that he "... weaponized his access to unmasked taxpayer data to further his own personal, political agenda, believing that he was above the law."
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Mr. Littlejohn allegedly leaked the Trump family's and the Trump organization's tax data to, among other outlets, the New York Times and ProPublica.
Note that the lawsuit involves the president now filing a lawsuit against, in effect, an agency of the Executive branch; he is suing his own administration. It's unclear what interesting precedents this case might set.
As of this writing, the case has not been assigned to a judge.
You can view the Trump complaint in its entirety here. This is a breaking story; as always, we'll be watching and will provide updates as events warrant.
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