A bipartisan group of 35 former federal judges [1] petitioned a Miami federal court on Wednesday, May 27, 2026 [4], to reopen a lawsuit filed by Donald Trump.
The move signals a significant legal challenge to a prior settlement, suggesting that the mechanisms used to resolve the dispute may have bypassed essential judicial oversight.
The original lawsuit against the Internal Revenue Service sought $10 billion [2]. Following the dismissal of that case, a post-dismissal settlement was reached that established a $1.8 billion fund [3]. The former judges are now urging the U.S. District Court for the Southern District of Florida in Miami to reexamine the deal [1].
In their petition, the judges allege the settlement constituted a "fraud on the court" [1]. They argue the agreement improperly created the $1.8 billion fund [3] by circumventing the standard judicial process, a move they claim lacked proper oversight [1].
The group of 35 former judges [1] consists of members from across the political spectrum. Their filing asks the court to probe the payout fund and determine if the settlement was reached through deceptive means that undermined the integrity of the legal system [1].
The petition specifically targets the legitimacy of the fund's creation and the circumstances surrounding the dismissal of the original $10 billion claim [2]. The judges said the court must determine if the settlement was a valid legal resolution or an improper arrangement designed to avoid public and judicial scrutiny [1].
“The judges allege the settlement was a 'fraud on the court.'”
This action represents a rare instance where a large, bipartisan group of former jurists intervenes in a settled case to challenge the integrity of the judicial process. If the court agrees that the settlement was a 'fraud on the court,' it could set a precedent regarding how high-value settlements involving government agencies and political figures are monitored and approved.
