DOJ New York Times subpoenas withdrawn in Trump Air Force One probe

The DOJ New York Times subpoenas tied to reporting on President Donald Trump’s new Air Force One jet are being withdrawn, federal prosecutors told a judge in Manhattan on Thursday. For everyday investors, the case is a reminder that legal fights involving the White House and major media organizations can move quickly through federal court, even when they are not market stories on their own.

The disclosure came during a hearing in U.S. District Court in Manhattan before Judge Arun Subramanian. The judge was weighing a request from The New York Times to throw out the subpoenas aimed at its journalists.

A subpoena is a legal demand for testimony, documents or records. A motion to quash is a request asking a court to block or cancel that demand.

Why did the DOJ withdraw the New York Times subpoenas?

Prosecutors told Judge Subramanian that the Department of Justice was withdrawing the subpoenas, according to the court proceeding described Thursday. No reason for the reversal was reported.

The Times had challenged the subpoenas while the judge was considering whether they should stand. The legal fight centered on reporters connected to a story about Trump’s new Air Force One jet.

The New York Times has reported that the Justice Department told the newspaper late last week it had sent subpoenas to outside phone service companies. Those subpoenas sought phone and text message records for several journalists, according to the Times.

The newspaper has also reported that the Justice Department had earlier issued subpoenas dated July 10 that sought to require Times reporters to appear before a federal grand jury.

What is a federal grand jury?

A federal grand jury is a group of citizens that hears evidence in a criminal investigation and can decide whether charges should be brought. Prosecutors can use subpoenas in that process to seek testimony or records.

The subpoenas described by the Times involved both potential testimony from reporters and records held by third-party phone providers. The withdrawal announced in court means the Justice Department is no longer pursuing those subpoenas, based on what prosecutors told the judge.

The dispute placed the Justice Department, The New York Times and the federal court in a direct confrontation over demands for information connected to journalists’ work. Judge Subramanian had been considering the newspaper’s effort to block the subpoenas when prosecutors said they would pull them back.

This story draws on original reporting from CNBC.