A defamation lawsuit for $20 million, initiated by IRS whistleblowers Gary Shapley and Joseph Ziegler against attorney Abby Lowell for Hunter Biden, has been settled. This lawsuit was filed in September 2024 and accused Lowell of acting with “manifest malice” while harming the reputations of IRS agents involved in investigating Hunter. The matter arose after Lowell claimed, in media interviews, that there had been illegal leaks of Hunter’s private tax details.
While a federal judge in Washington, D.C. dismissed the lawsuit last month, Shapley and Ziegler were contemplating an appeal at that time.
As part of the settlement, all parties consented to refrain from pursuing future litigation. Lowell acknowledged that Shapley and Ziegler had the right to “disclose confidential tax information related to the Hunter Biden investigation to the Congressional Tax Committee.”
Additionally, Hunter Biden’s attorneys recognized that Shapley and Ziegler believed they acted in good faith, abiding by the law and limiting their statements to information that had already been lawfully shared by others. Thus, they were under the impression they did not reveal any confidential information.
On their end, the whistleblowers agreed that Lowell “made legal arguments in good faith based on case law and thought he acted properly at all times to defend his client vigorously.”
Importantly, Lowell is not required to pay either Shapley or Ziegler due to this agreement.
Lowell’s attorney pointed out that, even though the whistleblowers sought $20 million, they ultimately received nothing. A representative for the whistleblowers stated that the settlement clarifies the legal protection surrounding their disclosures to Congress.
Empower Oversight, a group advocating for whistleblowers and representing IRS employees, emphasized that the case against Lowell “was never about money.” Tristan Leavitt, the group’s president, stated this settlement confirms that their clients adhered to legal protocols and their disclosures were protected.
Leavitt also added that the lawsuit aimed to restore the professional reputations of Shapley and Ziegler, making it easier for other whistleblowers to come forward without apprehension.
Lowell’s attorney expressed satisfaction with the resolution, stating, “The facts and results speak for themselves.” He noted the judge agreed that Lowell was justified in criticizing the investigators’ conduct and ruled out the defamation claim, asserting that this case should have never been pursued. Meanwhile, Hunter Biden had previously pleaded guilty to three felonies and six misdemeanors in a case investigated by Shapley and Ziegler, with President Joe Biden granting his son a pardon just before leaving office.
