The U.S. Supreme Court has delivered a blow to former Trump lawyer Michael Cohen, rejecting his bid to sue former President Donald Trump for alleged retaliation related to a tell-all book. The court’s decision on Monday upholds a lower court ruling that dismissed the lawsuit, citing a 2022 Supreme Court precedent limiting individuals’ ability to seek monetary damages from federal officials for constitutional violations. This legal setback for Cohen has had a notable impact on the stock market, with shares of Trump Media & Technology Group Corp, the company behind Trump’s social media platform Truth Social, experiencing an upswing following the news. DJT shares were last seen trading up more than 2%, according to Benzinga Pro.
Cohen, once a close advisor to Trump, turned into a vocal critic after pleading guilty to campaign finance violations and implicating Trump in a “hush money” scheme related to the 2016 election. His 36-month prison sentence in 2019 was ultimately served under home confinement during the COVID-19 pandemic. It was during this time that Cohen announced his plans to write a book detailing his experiences working with Trump. His subsequent attempt to exercise his First Amendment rights to publish the book and discuss it on social media led to him being sent back to prison. After a judge deemed his re-incarceration retaliatory, he was released again to home confinement.
In late 2021, Cohen filed a lawsuit against Trump and other federal officials, alleging violations of certain constitutional rights. This lawsuit, based on a 1971 Supreme Court ruling known as Bivens, aimed to hold federal officers accountable for damages related to constitutional violations. However, the Supreme Court’s 2022 decision significantly limited the scope of Bivens claims, ultimately leading to the dismissal of Cohen’s case by a federal judge. The U.S. Court of Appeals for the 2nd Circuit upheld the lower court’s ruling, prompting Cohen to appeal to the Supreme Court, which has now been rejected.
Trump’s lawyer Alina Habba has reportedly expressed satisfaction with the Supreme Court’s decision, stating that Cohen has exhausted all legal avenues in his attempts to drag Trump into court. “Michael Cohen has exhausted every avenue of his pathetic attempt to drag my client into court time and time again. As expected, the Supreme Court has correctly denied Michael Cohen’s petition and he must finally abandon his frivolous and desperate claims,” Habba said.
The rejection of Cohen’s lawsuit comes as a significant victory for Trump and could potentially bolster the perception of his media company, Trump Media & Technology Group Corp. The company’s stock performance in the wake of the ruling further underscores the impact of this legal development on the market.