D.C. reaches $750K settlement in Trump hotel lawsuit over alleged overcharging
Former President Donald Trump's businesses and inaugural committee have reached a deal to pay Washington, D.C., $750,000 to resolve a lawsuit that alleged the committee overpaid for events at his hotel and enriched the former president's family in the process, according to the District of Columbia's attorney general.
Attorney General Karl Racine announced the settlement agreement in the case against the Presidential Inaugural Committee, the Trump Organization and the Trump International Hotel in Washington in a tweet on Tuesday. The document had not yet been signed by a judge.
The agreement says the case is being resolved “to avoid the cost, burden, and risks of further litigation” and that the organizations “dispute these allegations on numerous grounds and deny having engaged in any wrongdoing or unlawful conduct.”
As part of the agreement, the defendants will pay the District of Columbia a total of $750,000, which will be used to benefit three nonprofit organizations, the settlement paperwork says.
“We're resolving our lawsuit and sending the message that if you violate DC nonprofit law—no matter how powerful you are—you'll pay,” Racine said in a tweet.
In a statement, Trump blasted Racine and noted that the settlement includes no admission of guilt or liability.
“As crime rates are soaring in our Nation's Capital, it is necessary that the Attorney General focus on those issues rather than a further leg of the greatest Witch-Hunt in political history,” Trump said. “This was yet another example of weaponizing Law Enforcement against the Republican Party and, in particular, the former President of the United States.”
Racine has said the committee misused nonprofit funds and coordinated with the hotel's management and members of the Trump family to arrange the events. He said one of the event's planners raised concerns about pricing with Trump, the president's daughter Ivanka Trump and Rick Gates, a top campaign official at the time.
Stocks rise ahead of Fed decision on rates
Stocks eked out modest gains after a choppy day of trading Tuesday as Wall Street waits to find out how aggressively the Federal Reserve will raise interest rates at its latest policy meeting today.
The yield on the 10-year Treasury fell to 2.97% from 2.99% late Monday. The S&P 500 rose 20.10 points to 4,175.48. The Dow gained 67.29 points to 33,128.79.
The Nasdaq rose 27.74 points to 12,563.76.
Technology stocks held on to slight gains after a mixed morning. Many companies in the sector have pricey stock values and therefore have more force in pushing the major indexes up or down. Apple rose
1%. The Russell 2000 added 15.94 points, or 0.9%, to 1,898.86.
Household goods giant Clorox rose 3% after reporting solid quarterly profits, but it also cut its profit forecast for the year because of higher costs. Starbucks will report its results later Tuesday. CVS Health will report its financial results on Wednesday.
BP jumped 8% after reporting its highest quarterly profit in more than a decade thanks to surging oil and gas prices. Devon Energy rose 10.2% and Diamondback Energy gained 6.8% after they reported strong financial results.