The ruling was a blow to both President Trump, who had voluntarily dismissed the suit last week, and to the Justice Department, which used the suit to establish a fund likely intended for Trump allies.
In a stern order on Friday, a judge said that she wanted to investigate the circumstances surrounding President Trump’s efforts to settle the lawsuit in a way that benefited him and his allies.
The Trump administration is creating a $1.8 billion fund to compensate people it says were wronged by the federal government, a group that could be largely made up of the president’s allies.
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