Stock Markets June 17, 2026 11:27 AM

Trump and Niece Reach Settlement in Dispute Over Leaked Tax Records

Court filing signals end of legal fight over New York Times probe; terms undisclosed, dismissal to be sought with prejudice

By Hana Yamamoto
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U.S. President Donald Trump and his niece Mary Trump have reached a settlement in a lawsuit alleging she improperly provided tax materials to the New York Times for its 2018 investigation. A joint letter filed on Tuesday in a Manhattan state court disclosed the agreement and said the parties plan to seek a formal dismissal in the coming weeks. No settlement terms were revealed; the expected dismissal would bar further suits on the matter.

Trump and Niece Reach Settlement in Dispute Over Leaked Tax Records
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Key Points

  • Trump and Mary Trump have settled the 2021 lawsuit alleging she leaked tax-related information to the New York Times; the settlement was disclosed in a letter filed on Tuesday in a Manhattan state court.
  • The parties plan to seek a dismissal with prejudice in the coming weeks, but the filing did not reveal any terms of the agreement.
  • Prior court decisions left mixed outcomes: a 2024 appeals court found a substantial legal basis for Trump’s confidentiality claim but suggested only nominal damages might apply; the judge previously dismissed related claims against the New York Times and ordered Trump to pay $392,639 in legal fees.

U.S. President Donald Trump and his niece, Mary Trump, have resolved the litigation in which he accused her of leaking tax-related information to the New York Times for its 2018 investigation into his finances and tax practices. Both parties informed a New York state court in Manhattan of the settlement in a letter filed on Tuesday, and indicated they will move to secure a formal dismissal in the near future.

The filing did not disclose any details of the agreement. The parties stated that the anticipated dismissal will be with prejudice, which would prevent Mr. Trump from bringing the same claims again.

Requests for comment did not immediately produce responses from the lawyers representing either Donald Trump or Mary Trump. The White House directed inquiries to the president's legal team.

Mr. Trump commenced the suit in 2021, accusing his niece of participating in what he described as an "insidious plot" with the New York Times to capitalize on his tax records for financial gain, political objectives and personal vendettas. Central to his claim was an allegation that Mary Trump breached confidentiality provisions in a 2001 settlement tied to the estate of Fred Trump Sr. Fred Trump Sr. was Donald Trump’s father and Mary Trump’s grandfather; he died in 1999.

Mary Trump, a psychologist, publicly identified herself as a source for the Times in her 2020 memoir, "Too Much and Never Enough: How My Family Created the World’s Most Dangerous Man."

Legal developments prior to the settlement had produced mixed results for the parties. In May 2024, a New York state appeals court found there was a "substantial" legal basis for Mr. Trump’s confidentiality claim, while noting that he might be entitled only to nominal damages rather than the $100 million he originally sought.

Counsel for Mary Trump countered that the lawsuit ran afoul of a New York statute that bars baseless cases brought to silence critics and chill free speech.

Other related rulings have also shaped the litigation landscape. In 2023, a judge dismissed Mr. Trump’s related claims against the New York Times and the reporters involved, and ordered him to pay $392,639 toward their legal fees. Separately, in 2022 the same judge dismissed Mary Trump’s separate lawsuit alleging that the president and two of his siblings had defrauded her out of a multimillion-dollar inheritance.


Next procedural step: The parties indicated they will seek a formal dismissal in the coming weeks; the filing said the dismissal would be with prejudice. No financial or other terms were disclosed in the court filing.

Risks

  • Uncertainty about the settlement terms - because no terms were disclosed, parties and observers lack clarity on potential confidentiality provisions or other conditions that could affect future disclosures or litigation - this uncertainty could influence legal and media sectors.
  • Ongoing legal exposure in related matters - earlier rulings and separate suits (including the 2022 dismissal of Mary Trump’s inheritance claim) indicate continued legal complexity that could sustain litigation-related costs for the parties and their counsel - impacting the legal services sector.
  • Potential free-speech and anti-SLAPP considerations - Mary Trump’s lawyers argued the suit contravened a New York law against baseless cases designed to silence critics; outcomes and interpretations of such claims may affect media organizations, journalists, and litigation strategy for public-figure reporting.

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