Transcript for Trump slams lawsuit against his family's foundation

Now to president trump facing a multimillion dollar lawsuit by New York's attorney general making sweeping accusations against his charitable foundation. The president immediately slamming the lawsuit which also names three of his oldest children. As politically motivated. ABC's Kyra Phillips has more in Washington for us. Good morning, Kyra. Reporter: The lawsuit accuses the president, don junior and ivanka citing sweeping violations of campaign finance laws. President trump calling the lawsuit ridiculous and engineered by sleazy New York Democrats. President trump sounding off on Twitter after the New York attorney general announced she is suing the president, three of his children and his charitable foundation. Tweeting, the sleazy New York Democrats are doing everything they can to sue me on a foundation that gave out to charity more money than it took in. I won't settle this case. The suit accusing them of illegally using funds from the Donald J. Trump foundation to pay legal bills and pend $10,000 on a portrait himself later hung on the walls of one of his golf clubs. The most damning allegation involving this Iowa fund-raiser that candidate trump staged instead of participating in a debate. That event raking in $2.8 million for the trump foundation. We love our vets. Reporter: The lawsuit citing this email from campaign manager Corey Lewandowski requested the foundation to make grants in Iowa just days before the caucuses asking is there any way we can make some disbursements from the proceeds of the fund-raiser this week while in Iowa? Trump proudly presented at least five $100,000 grants to Iowa charities just days before the Iowa caucuses. 100,000 you can do a lot, right? Yes, sir. Reporter: The white house says the suit is the result of an agenda against the president. That sounds outragely bias. Reporter: But the attorney general insists the state just wants restitution. This is not either a sleazy or political action. This is a straightforward case of violation of the laws. Reporter: Now, robin, this isn't a criminal case and there are no criminal charges but this still could sting. The lawsuit seeks to shut down the foundation, force the president and his kids to pay nearly $3 million in restitution and also make sure they never lead a nonprofit for at least a decade. Kyra, thank you very much. We'll talk more about this with our chief legal analyst Dan Abrams also there in Washington and we heard that the president, Dan, he believes this is politically motivated. Reporter: Look, the allegation here is effectively that this was a shell foundation, that the treasurer didn't even know that he was the treasurer. That there were no employees of the foundation. And effectively what the attorney general is saying is they were intermingling fund, using the funds from the foundation to, as Kyra points out, support campaign cost, legal fee, et cetera. There are specific rules and laws that exist when you have a not for profit organization and you're not allowed to intermingle funds or use it for other things and that's going to become the legal question here. As Kyra also pointed out, this is a California case. That's right. For now this is just civil. Meaning money damages to prevent the family from ever serving as leaders of foundations in new York, at least for the next year or in Donald Trump's case for ten years, pay restitution but the attorney general has also referred this to the irs and federal election commission. So there could be in the future possible state or federal charges but for now this is just civil. Let's turn to the justice department's report that was very critical of the former FBI director. What's your bottom line on this, Dan? So, this is a very long report, hundreds of pages which evaluated the way that the Clinton email -- the Clinton email investigation went forward. And the only sort of declare tiff finding of wrongdoing was with regard to James Comey. And how he went about doing what he did. Meaning the announcement he made in June, the announcement that he made in October of 2016 and it wasn't just that he made the announcement, it was what he said about Hillary Clinton. The rest of it talks about the appearance of bias, possible bias, et cetera, but that's a different issue. We'll see how it impacts the FBI's reputation. Dan, thanks very much.

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