The New York State Supreme Court has denied a motion from lawyers representing President Donald Trump to dismiss a lawsuit brought by the New York Attorney General that accuses the Trump Foundation of misusing the charity.
New York Acting Attorney General Barbara Underwood announced the decision on Friday afternoon.
“#BREAKING: The New York State Supreme Court just denied the motion to dismiss our lawsuit against the Trump Foundation and its directors: @realDonaldTrump, Donald J. Trump Jr., Ivanka Trump, and Eric Trump,” she tweeted on Friday afternoon.
New York State Supreme Court Justice Saliann Scarpulla signed the decision.
Underwood elaborated on the decision in a statement:
As we detailed in our petition earlier this year, the Trump Foundation functioned as little more than a checkbook to serve Mr. Trump’s business and political interests. There are rules that govern private foundations—and we intend to enforce them, no matter who runs the foundation. We welcome Justice Scarpulla’s decision, which allows our suit to move forward.
The lawsuit, filed in June, alleged that the Trump Foundation was in “persistent violation of state and federal laws” and argued that it should be dissolved. It called the foundation an “empty shell” that had “no oversight” by its board.
“This pattern of illegal conduct by the Foundation and its board members includes improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations or to implement even elementary corporate formalities required by law,” the suit reads.