Nineteen attorneys general, including New York’s Letitia James, accused the president of failing to faithfully execute the nation’s laws when he let Mr. Musk comb through federal computer systems.

An overhaul led by President Donald Trump ’s billionaire ally Elon Musk —who has called the agency a “ball of worms”—has already seen hundreds of internal contractors let go and scores of remaining staff placed on leave.

The lawsuit alleged the breach of sensitive Treasury Department data "poses huge cybersecurity risks" and violates multiple federal laws.