Former President Donald Trump will cover The New York Times and three of its reporters' legal expenses related to a dismissed lawsuit filed last year, amounting to nearly $400,000, as a New York Judge ordered.

A lawsuit filed against the newspaper in September 2021 accused three journalists of "insidious plot" to obtain Trump's confidential tax records as part of an investigative report that won a Pulitzer Prize in 2018, where one of the articles was named "Trump Engaged in Suspect Tax Schemes as He Reaped Riches from His Father."

Tax Evasion

The newspaper's investigation exposed that Trump received around $413 million (adjusted for inflation) from his father over several years despite his long-standing claims of independently building his business fortune as a real estate mogul, which was transferred through a shell company to evade taxes.

Trump's lawyer, Alina Habba, did not respond to CNBC's request for comment but expressed eagerness in pursuing the lawsuit claim against Mary Trump, the former president's estranged niece, despite the New York Times is no longer involved in the matter, according to an NBC News statement.

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Personal Vendetta and "Insidious Plot" Accusations

Trump's lawsuit, originally aiming for $100 million in damages, accused the newspaper and reporters of having a "personal vendetta" with Trump and engaged in an "insidious plot" with Mary Trump to acquire his tax records for the articles. Judge Robert Reed dismissed the suit in May, saying that the claims failed as a matter of constitutional law, and ordered Trump, who is running for a return to the White House in this year's election, to cover the defendants' costs, namely: Susanne Craig, David Barstow, and Russ Buettner.

"SLAPP" Statute for Press Freedom

In a statement to CNBC, Times spokesperson Danielle Rhoades Ha mentioned that the Manhattan Supreme Court's order for legal costs demonstrates the strength of the state's newly amended anti-SLAPP statute. This acronym stands for "strategic lawsuit against public participation." It safeguards press freedom and prevents the misuse of the judicial system to silence journalists.

Reed wrote that courts have consistently acknowledged the reporter's entitlement to carry out legal and routine news-gathering activities without the threat of legal responsibility, which is fundamental to protecting First Amendment activity.

The Times requested a total of $229,921 in costs for the newspaper and $162,717 for the reporters, with invoices to support the request. However, Trump opposed the request, arguing that the amount should be substantially reduced as the invoice included unjustified or duplicative work and exorbitant hourly rates, as noted in Judge Reed's Friday order, which found the requested amount reasonable.

The judge pointed to the lawsuit's complexity, the number of claims, the defense attorneys' reputation, the substantial amount involved, and the defense attorneys' success in dismissing the case.

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