Former Trump attorney Michael Cohen settles lawsuit against Trump Organization

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WASHINGTON/NEW YORK, July 21 (Reuters) – Michael Cohen, once Donald Trump’s personal lawyer and fixer, has settled his lawsuit accusing the Trump Organization of failing to cover millions of dollars in legal fees incurred for his work for the former US president.

Attorneys for both sides revealed the settlement at a hearing in New York state court in Manhattan on Friday, three days before the trial began.

Terms of the deal were not disclosed. Cohen and a Trump Organization attorney said the matter “has been resolved to the satisfaction of all parties.”

Once a strong supporter of Trump, Cohen is now a vocal critic, whose 2020 memoir “Disloyal” was a New York Times bestseller.

He said the Trump Organization reneged on his deal to pay his bills after it began cooperating with several investigations into his work for the former president.

These included investigations into alleged Russian interference in the 2016 election and Trump’s efforts to silence women who claimed to be having affairs with him.

Cohen originally sued in March 2019 to recover $1.9 million in taxes, plus $1.9 million he was ordered to forfeit in a criminal case. Taxes have continued to rise, and the Trump Organization has paid some of them, court documents show.

Despite Friday’s deal, Cohen is expected to be a key prosecution witness against Trump in a criminal trial next March.

That case involves payments Cohen made, and which Trump repaid, to porn star Stormy Daniels to keep her quiet before the 2016 presidential election about her alleged relationship with Trump, which he denies.

Cohen is also seeking the dismissal of a $500 million lawsuit filed by Trump in Florida federal court.

In that case, Trump accused Cohen of violating ethical rules governing the conduct of lawyers by disclosing “confidences” and “spreading falsehoods” in books and the media, and damaging his reputation by calling him a “racist.”

Trump, a Republican seeking the presidency again, faces many other legal problems.

These include a criminal trial next May in Florida on charges of illegally stealing classified documents from the White House and lying to officials trying to recover them.

Trump also faces possible charges for his efforts to remain president following his 2020 election loss to Democrat Joe Biden.

Cohen served a three-year sentence, partly in prison and partly in home isolation due to the COVID-19 pandemic, after pleading guilty in 2018 to campaign finance violations and tax evasion.

Reporting by Karen Freifeld, Katharine Jackson and Ismail Shakil in Washington, DC, and Jonathan Stempel in New York; Editing by Kanishka Singh, Doina Chiacu, Daniel Wallis and Sharon Singleton

Our standards: The Thomson Reuters Principles of Trust.

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