US President Donald Trump’s namesake charitable foundation has reached an agreement to dissolve under court supervision amid a legal battle with New York’s attorney-general.
- Ms Underwood is seeking millions of dollars in penalties
- She has accused Mr Trump and his children of improper self-dealing and misuse of assets
- Last month, New York Supreme Court rejected Mr Trump’s motion to dismiss the lawsuit
New York Attorney-General Barbara Underwood, a Democrat, said the Donald J Trump Foundation’s assets would be distributed to charities vetted by her office. The deal is subject to approval by a New York state judge.
New York filed a lawsuit last spring accusing the foundation of operating like an extension of Mr Trump’s businesses and political campaign. That suit will continue.
Lawyers for the foundation said any infractions were minor. They said they had been trying to shut down the foundation voluntarily for months.
Ms Underwood is seeking millions of dollars in penalties. She wants Mr Trump and his eldest children barred from running other charities.
The White House and a lawyer for the foundation could not immediately be reached for comment.
Mr Trump, a Republican, has previously described Ms Underwood’s lawsuit on Twitter as 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 Mr Trump’s motion to dismiss Ms Underwood’s lawsuit.
The motion had argued that the US Constitution immunised Mr Trump from Ms Underwood’s claims alleging breach of fiduciary duty, improper self-dealing, and misuse of assets belonging to the foundation.
Ms Underwood sued Mr 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 Mr Trump’s campaign.
The lawsuit remains pending.