Democratic Racketeering Lawsuit Against Rep. DeLay Ends

A civil racketeering lawsuit brought by Democrats against House Majority Whip Tom DeLay (R-Texas) over fund-raising was closed Thursday under an agreement between the two sides.

The Democratic Congressional Campaign Committee and DeLay reached a deal two weeks before the case was to have gone to trial before U.S. District Judge Thomas Penfield Jackson. However, they argued over whether it was a settlement or a dismissal, and both claimed victory.

The agreement cited as reasons to conclude the case a new law that tightened financial disclosure rules for certain political groups organized under Section 527 of the tax code and DeLay’s own moves to distance himself from some of the groups’ activities.

The Democrats admitted their lawsuit “does not now reflect the current actions, intentions or expectations” of DeLay, according to court documents. But DeLay repeated in the agreement that he continues to “dispute and deny” the allegations, which included claims that he extorted contributions from those with interests before Congress and ran a network of entities meant to avoid reporting requirements.

In a statement, DeLay said the lawsuit was a “desperate [Democratic] ploy to win back the House” in last year’s election. Democrats contended, however, that the lawsuit had its intended effect.