U.S. President Donald Trump’s namesake charitable foundation has agreed to dissolve under court supervision following a lawsuit by New York’s attorney general claiming Trump misused the foundation to advance his 2016 presidential campaign and his businesses, the attorney general said on Tuesday.
New York Attorney General Barbara Underwood, a Democrat, said the Donald J. Trump Foundation’s assets will be distributed to charities vetted by her office. The deal is subject to approval by a New York state judge.
Trump has previously said on Twitter that Underwood’s lawsuit was a concoction by “sleazy New York Democrats.”
The ruling came less than a month after Justice Saliann Scarpulla of the New York State Supreme Court in Manhattan rejected Trump’s motion to dismiss Underwood’s lawsuit.
The motion had argued that the U.S. Constitution immunized Trump from Underwood’s claims alleging breach of fiduciary duty, improper self-dealing, and misuse of assets belonging to the Foundation.
Underwood sued Trump and his adult children Donald Jr., Eric and Ivanka on June 14, after a 21-month probe that she said uncovered “extensive unlawful political coordination” between the foundation and Trump’s campaign. The lawsuit remains pending.