Justice Department Targets Billionaire-Linked Group Over Trump Lawsuit Funding

The U.S. Justice Department has commenced an investigation into a group linked with billionaire Reid Hoffman over its involvement in financially supporting writer E. Jean Carroll's lawsuits against former President Donald Trump, according to sources familiar with the case.

The investigation, originating from the U.S. Attorney's Office in Chicago, is scrutinizing allegations of money laundering and obstruction concerning the group, American Future Republic. This entity funded some of Carroll's legal battles, which were successful in claiming Trump committed sexual abuse and defamation.

Although the investigation touches on Carroll's lawsuit funding, she is not its target. External financing of lawsuits is prevalent in the U.S. and typically not deemed illegal. Reid Hoffman's American Future Republic and associated parties have yet to comment on these developments.

(With inputs from agencies.)