A newly reported Justice Department investigation is drawing new attention to the financial backing behind E. Jean Carroll’s lawsuits against President Donald Trump, including the role played by billionaire Democratic donor and LinkedIn co-founder Reid Hoffman.
According to recent reports, federal investigators are examining American Future Republic, a nonprofit linked to Hoffman that helped cover legal expenses associated with Carroll’s civil litigation against Trump. The inquiry reportedly centers on questions surrounding litigation funding and statements made during Carroll’s 2022 deposition about who was paying for her legal fight.
Carroll won two major civil judgments against Trump, with juries finding him liable for sexual abuse and defamation. The combined awards totaled roughly $88 million. Trump has consistently denied Carroll’s allegations and continues to pursue appeals.
At the center of the latest controversy is Carroll’s sworn testimony during a 2022 deposition. When asked whether anyone else was funding her legal effort, Carroll answered that no outside party was paying her legal fees. However, it was later disclosed that funding connected to Hoffman’s nonprofit helped cover certain legal expenses associated with the case.
The funding arrangement first became public shortly before Carroll’s 2023 trial. Hoffman adviser Dmitri Mehlhorn later explained that the money was originally provided to Carroll’s law firm, Kaplan Hecker & Fink, for unrelated public-interest litigation before being redirected to assist Carroll’s case against Trump after attorneys requested permission to do so.
Reid Hoffman, angel investor and connector, speaks at a conference. Date 20 December 2008
Carroll later addressed the discrepancy publicly, saying she had forgotten Hoffman’s involvement. During a May 2023 appearance on CNN, Carroll was pressed on why she had not disclosed under oath that Hoffman helped cover her legal expenses.
“I just completely forgot he even existed,” she added.
Hoffman has long been a major donor to Democratic causes and political organizations. He also provided financial support that ultimately helped fund Carroll’s legal battle against Trump.
In an August 2024 statement, Hoffman explained his political involvement by saying, “My primary motivation for participating in politics over the last eight years has been to oppose Donald Trump’s ongoing attempts to break American democracy by corrupting and hollowing out its most cherished institutions.”
E. Jean Carroll attends Time100 gala at Jaz at Lincoln Center in New York on April 25, 2024
He continued, “Unlike some, I have not forgotten Trump’s support of the Jan. 6 insurrection and its violence, nor his attempt to coerce state officials to ‘find’ him some more votes.”
Trump’s legal team argued that the revelation raised serious credibility concerns and accused Carroll of providing misleading testimony under oath. Courts ultimately rejected those arguments. The U.S. Court of Appeals for the Second Circuit found there was insufficient evidence to conclude Carroll intentionally lied and noted there was no indication she had personally secured the funding or even knew about its source before later questioning.
Despite widespread reports suggesting Carroll herself was being investigated for perjury, multiple outlets have since reported that the primary focus of the federal inquiry is American Future Republic rather than Carroll personally. Sources familiar with the matter told Axios that Carroll is not currently the subject of the investigation.
That distinction has done little to calm political tensions. Federal prosecutors have not announced any charges against Carroll, Hoffman, or American Future Republic. The investigation remains ongoing, and officials have released few details about its scope.
For now, the biggest revelation is not a criminal charge or courtroom ruling, but the renewed scrutiny surrounding who financed one of the most consequential legal battles involving Donald Trump and whether those financial arrangements were fully disclosed from the start.
