Trump Organization drops $10 billion IRS lawsuit

What happened: On May 18, the Trump Organization, including President Donald Trump and his two eldest sons, dropped a $10 billion lawsuit against the IRS. This move came amidst controversy over reports involving the Department of Justice. Separately, Coca-Cola is escalating its tax dispute with the IRS to a federal appeals court in Miami, challenging a $20 billion tax assessment.

Market impact: The Trump Organization's lawsuit withdrawal may signal a shift in the company's legal strategy, potentially impacting its financial outlook and shareholder sentiment. Meanwhile, Coca-Cola's appeal could influence investor perceptions of the beverage giant's tax liabilities and cash flow, affecting its valuation and stock price.

What to watch next: Investors should monitor the Trump Organization's future legal moves and any potential fallout from the dropped lawsuit. Additionally, they should closely follow Coca-Cola's appeals process and the outcome of its $20 billion tax dispute, as it could set a precedent for other multinational corporations facing similar IRS assessments.