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Judge Lets Trump Withhold Financial Docs From BBC

adminAugust 6, 20264 Mins read0

Judge Lets Trump Withhold Financial Docs From BBC

Topline

The trust holding President Donald Trump’s assets will not have to start turning over financial documents to the BBC on Thursday as it had previously been ordered to do, as a federal judge ruled in Trump’s favor and let the documents stay hidden while the president continues to argue in court that they shouldn’t be released.

President Donald Trump speaks at an event at the Red Rock Casino Resort and Spa in Las Vegas on Aug. 5.

Key Facts

Judge Roy K. Altman paused an earlier ruling in Trump’s defamation lawsuit against the BBC, in which Magistrate Judge Enjolique A. Lett ordered the revocable trust holding Trump’s assets to turn over vast amounts of financial information to the broadcaster.

Trump is suing the BBC for $10 billion in defamation damages over a 2024 documentary he claims hurt his business and reputation, and the BBC has demanded Trump provide financial information to show he actually suffered the losses he claims.

Altman granted the Trump trust’s last-minute request to pause Lett’s order, which argued the trust shouldn’t have to give over documents while it disputes the issue in court—since once the documents are turned over, they can’t be taken back.

The judge sided with the president’s trust, calling its argument “compelling” and noting Trump intends to file an updated complaint that only claims the documentary harmed his personal reputation and not his businesses—which should keep him from having to disclose his companies’ finances.

Altman paused the order until after Trump files an updated complaint, making it unclear when any documents will be turned over to the BBC and what financial information the broadcaster will be able to get if the lawsuit is narrowed.

The BBC declined to comment Thursday on the ruling, but strongly opposed the trust’s request to withhold the documents in a filing Wednesday, arguing it “is a transparent effort to evade this Court’s clear and direct order and to continue to avoid the discovery obligations that Plaintiff took on when he chose to file this lawsuit.”

Crucial Quote

If Trump’s amended complaint “obviates the need to compel a non-party to disclose confidential financial information,” Altman wrote, referring to Trump’s trust, “we think it’s prudent to enter a brief stay of the Order until the amendment request is resolved.”

What to Watch for

It’s unclear when Trump could file his updated complaint in the case, and he has no clear deadline to do so. That means it could take months before the court revisits the issue of Trump having to turn over financial documents, and the scope of those documents will likely be restricted by what the new lawsuit argues.

Forbes Valuation

Forbes values Trump’s net worth at $6.4 billion as of Thursday afternoon, with that wealth being made up of assets that are being held by the revocable trust.

What Is Trump’s Revocable Trust?

Trump’s trust was established when the president first entered the White House after the 2016 election, and was created as a way for him to distance himself from his business empire without having to actually divest from it. The trust is overseen by Donald Trump Jr. and only holds the president’s assets, and he is the only beneficiary of the trust. Regulatory filings in the U.K. suggest Trump has more direct control over the trust than he claims, Forbes has previously reported, listing the president as being someone with “significant control” who has “the right to exercise, or actually exercises, significant influence or control over the activities of a trust.” The White House and Trump Organization have defended Trump’s continued ties to his companies, however, claiming it does not run afoul of any federal laws.

What Documents Did The Trust Have To Turn Over?

Prior to Altman’s order, Trump’s trust was on the hook for disclosing numerous details about the president’s finances and the value of approximately 400 businesses he has ties to. The BBC’s subpoena directed the trust to turn over financial documents, including tax returns, showing the value of the trust, all the assets it holds and how its value has changed from year to year, as well as specific financial information about each of the Trump-linked companies. It also asked for an accounting of Trump’s personal assets being held in the trust, including “tangible personal property,” intellectual property and digital assets like the president’s cryptocurrency holdings. While many documents were unlikely to have been released publicly, the subpoena could have given a broad accounting of the billionaire president’s lavish wealth, with details that have so far not been made public through financial disclosures, like how exactly the president is earning billions off his memecoin and cryptocurrency ventures. It could also have shed some light on his eldest sons’ finances, given their involvement in many Trump-linked companies and Donald Trump Jr.’s stewardship of the trust.

Key Background

Trump sued the BBC for defamation in December, seeking $10 billion in damages over its 2024 “Panorama” documentary that aired ahead of the presidential election. The documentary showed footage of Trump’s speech to supporters directly before the Jan. 6 riot and was edited to suggest Trump had called for violence, showing Trump saying, “We’re going to walk down to the Capitol… and I’ll be there with you. And we fight. We fight like hell.” In actuality, Trump said, “We’re going to walk down to the Capitol, and we’re going to cheer on our brave senators and congressmen and women,” before making the comment to “fight like hell” more than 50 minutes later. Trump has alleged the editing job was an attempt to defame him and hurt his chances in the 2024 election, though the documentary did not air in the U.S. The BBC maintains the edit was not defamatory as Trump claimed, but has experienced fallout from the episode, with multiple BBC officials resigning after Trump took issue with it. The broadcaster also apologized to the president, acknowledging the edit gave “the mistaken impression that President Trump had made a direct call for violent action.”