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Daniels, whose legal name is Stephanie Clifford, has said she had sex with Trump once in 2006 and was later threatened to keep quiet about it. Trump's then-attorney, Michael Cohen, had Daniels sign a non-disclosure agreement about the alleged affair days before the 2016 election. Trump has denied the affair occurred.

On Wednesday, Daniels and Avenatti filed a new lawsuit in California's Superior Court against Cohen and Daniels's former lawyer, Keith Davidson. The suit alleges Davidson betrayed Daniels by communicating with Cohen in order to benefit Cohen and Trump.

Davidson responded to the lawsuit in a statement Wednesday.

“This outrageously frivolous lawsuit is yet another desperate attempt by Michael Avenatti to continue his ‘publicity tour,’ as well as divert attention from the recent allegations against him relating to bankruptcy proceedings and the failure to withhold millions of federal employee taxes,\" the statement read.

\"That said, Attorney Davidson is very happy that he has filed this lawsuit because he strongly believes that the filing constitutes a full and complete waiver of the attorney-client privilege. Thankfully, the truth can now finally come out to rebut the false narrative about Attorney Davidson that Mr. Avenatti has been pushing in his more than 175 television appearances and countless other media interviews. Attorney Davidson believes that the American people deserve to know the entire truth - and they soon will. This lawsuit has made that happen,\" the statement continued.

Cohen has admitted he paid Daniels $130,000 in 2016. In a statement to ABC News in February, Cohen said it was a private transaction using his \"own personal funds\" that were paid to Daniels.

But Giuliani recently appeared to contradict that, telling Fox News last month that Trump had repaid Cohen the $130,000.

Brent Blakely, who represents Michael Cohen in a California lawsuit over the non-disclosure agreement, issued a statement Wednesday: “This new lawsuit filed by Stephanie Clifford aka Stormy Daniels has no merit whatsoever as to my client, Michael Cohen, and appears to be yet another publicity stunt. We look forward to defeating this lawsuit in court. “

Daniels is demanding a jury trial in the lawsuit filed today, and seeking damages as well as the return of her client file from Davidson, including text messages between Davidson and Cohen that relate to her.

“These text messages show that the prior denials by Mr. Trump and Mr. Cohen relating to what Mr. Trump knew and about the honesty of my client were absolute lies,\" Avenatti said in a statement. \"There was a significant cover-up here as part of an attempt to deceive the American people and Mrs. Trump and we intend on getting to the bottom of it.”

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