Nunberg says in his answer to the lawsuit that the Trump campaign illegally created a fictitious company, called Trump 2012 PCA. The company is listed as a plaintiff in the suit against Nunberg, along with Trump’s formal campaign.

Nunberg also claims the campaign “may very well” have violated campaign finance laws by using Trump company resources for Trump’s political campaign.

News of the lawsuit and response upstaged Trump’s search for a running mate, according to a source close to the campaign, who spoke on the condition of anonymity.

“This is happening on the worst possible day for him,” said the adviser, who added that Trump disregarded advice not to file the lawsuit in the first place.