A recent lawsuit alleges Gov. Glenn Youngkin received $8.5 million in cash and exchanged his nearly $200 million stake in a company for an equal amount of tax-free shares during a business deal in 2020, according to court documents obtained by NBC News.

Several other company executives allegedly received over $200 million combined and exchanged their company holdings into tax-free shares during the deal at The Carlyle Group, a Washington-based private equity company where Youngkin served as co-chief executive officer. Youngkin worked for the company for about 25 years before stepping down in 2020.

The suit, filed on behalf of the Pittsburgh Comprehensive Municipal Pension Trust Fund, reportedly states the transaction harmed Carlyle’s stockholders and allowed the executives to escape a massive tax bill at the expense of police officers and firefighters.

The Pittsburgh fund is comprised of the Municipal Pension Fund, the Firemen’s Relief and Pension Fund and the Policemen’s Relief and Pension Fund.

When asked for comment Thursday, Youngkin spokesperson Macaulay Porter described the transaction as above board.

“When Mr. Youngkin was a member of Carlyle’s leadership, the Carlyle board and an independent special committee retained independent experts and advisors to consider and approve a transaction that had significant benefits for the company and its shareholders,” she wrote.

On Thursday, the Democratic Party of Virginia shared a statement about the lawsuit on social media that also referenced Youngkin’s recent criticism of the Federal Bureau of Investigation.

The governor spoke out against the FBI this week after the agency executed a search warrant at former President Donald Trump’s Mar-a-Lago resort in Florida.

“Earlier this week, Gov. Youngkin attacked law enforcement,” the organization wrote on Twitter. “Now he’s being sued for lining his pockets at the expense of police officers. He’s never been pro-police.”

The Republican Party of Virginia came to the governor’s defense.

“Democrats are desperate to find any way to hit Gov. Youngkin,” the organization said in a Friday statement. “He continues to make great strides in turning our Commonwealth into the best place to live, work and raise a family.”

Katie King, katie.king@virginiamedia.com