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Photo: Bill O'Leary/The Washington Post via Getty Images

D.C. Attorney General Karl Racine filed a lawsuit against President Trump's inaugural committee and business Wednesday, claiming that the committee "abandoned" its purpose as a nonprofit by improperly overpaying to book event space at Trump's D.C. hotel.

The big picture: The lawsuit alleges the committee coordinated with the Trump family to "grossly overpay" for event space in the hotel without considering other venues. The committee allegedly ended up paying a total of $1 million for the space, including on days it wasn't used.

What they're saying: "District law requires nonprofits to use their funds for their stated public purpose, not to benefit private individuals or companies," Racine wrote. "In this case, we are seeking to recover the nonprofit funds that were improperly funneled directly to the Trump family business."

The Trump Organization responded with the following statement, per the Washington Post:

"The AG's claims are false, intentionally misleading and riddled with inaccuracies. The rates charged by the hotel were completely in line with what anyone else would have been charged for an unprecedented event of this enormous magnitude and were reflective of the fact that hotel had just recently opened, possessed superior facilities and was centrally located on Pennsylvania Avenue. The AG's after the fact attempt to regulate what discounts it believes the hotel should have provided as well as the timing of this complaint reeks of politics and is a clear PR stunt."

Go deeper: Trump Organization considers sale of flagship D.C. hotel

Go deeper

Bernie Sanders: U.S. must recognize that "Palestinian rights matter"

Sen. Bernie Sanders. Photo: Stefani Reynolds via Getty Images

The United States must encourage an immediate cease-fire in the Middle East and adopt an "evenhanded approach" that recognizes Palestinians and Israelis have a right to "live in peace and security," Sen. Bernie Sanders (D-Vt.) wrote in a New York Times opinion on Friday.

Driving the news: Violence escalated this week after Israelis intensified efforts to evict Palestinians from their homes in Jerusalem. Hamas fired rockets and Israel massed troops, leaving more than 125 Palestinians and seven people in Israel dead.

3 hours ago - Technology

Exclusive: Uber makes new hire, launches anti-racism campaigns

Illustration: Aïda Amer/Axios

Eager to show progress on the pledge to make its platform and business anti-racist, Uber on Friday announced new anti-racism driver and rider campaigns, as well as fresh internal hiring practices, Axios was first to report.

Why it matters: Uber is one of the biggest ride hailing companies in the world. Its decisions impact the millions that use the platform, where drivers and riders alike say they have experienced racism.

Ex-Gaetz associate admits to sex trafficking, will cooperate with federal prosecutors

Rep. Matt Gaetz (R-Fl) speaks during the "Save America Summit" at the Trump National Doral golf resort on April 09, 2021 in Doral, Florida. Photo: Joe Raedle/Staff via Getty Images

Joel Greenberg, a former associate of Rep. Matt Gaetz (R-Fla.), has agreed to cooperate with federal investigators and admitted to a variety of federal charges including sex trafficking a minor, the New York Times reported Friday citing court papers.

Why it matters: Investigators believe Greenberg introduced women to Gaetz for paid sex and are looking into the Florida congressman's alleged sexual relationship with a 17-year-old girl. Greenberg could be a key witness as federal prosecutors decide whether to charge Gaetz.