This lawsuit also concerns the fact that Trump wanted to keep his company ownership when he was elected as the new president of the United States.
In January, Trump announced his investments and business assets would be conveyed to a trust ahead of his inauguration on Jan. 20.
Trump retains ownership of his company and is to receive regular updates, the newspaper said.
The high-profile lawsuit claims that Trump is in violation of Article I, Section 9, Clause 8 of the US Constitution, the so-called Emoluments Clause.
Republican lawmakers have shown little interest in holding President Donald Trump accountable for much of anything. But by still owning a stake in those businesses, and profiting from them, many ethics experts have said that the president's plan did not go far enough.
Mr Trump already faces a similar lawsuit that was brought in January by plaintiffs including an ethics non-profit group.
Democratic attorneys general have taken a lead role in challenging Trump policies, successfully blocking executive orders restricting travel from some Muslim-majority countries.More news: Gulf states issue 13 demands to Qatar as rift continues
More news: 5th GOP Senator Publicly Opposes Health Care Bill
More news: Confederations Cup: Ronaldo strikes as Portugal down Russia
Racine said he and Frosh chose to act because the Republican-controlled Congress has "wholly failed to fulfill its responsibility of serving as a check and balance on the president".
The lawsuits contend that Mr. Trump violates the "emoluments" clause by receiving economic benefits from owning a company that rents rooms and spaces to foreign governments in NY and the District of Columbia. The Washington Post reported that the Kuwaitis even moved their booking to Trump's place, foregoing the Four Seasons, a hotel they had booked for years. A nonprofit restaurant group and others have joined the suit since.
As I said in a previous post, I think Donald Trump eventually will resign the USA presidency and that he'll concoct some excuse for doing so, which might be that the federal government is treating him unfairly regarding his financial empire.
White House press secretary Sean Spicer on Tuesday disputed that Trump's interests in his businesses violated the emoluments clause, pointing to the arguments raised by the Justice Department in its motion to dismiss the case in NY.
The Justice Department sought to have that suit dismissed on Friday, arguing that none of the plaintiffs suffered an injury that would give them standing to sue, according to papers filed in Manhattan federal court.
Payments to Trump's hotels do not qualify as a violation of the emoluments clause, which is meant to cover personal services performed by the president, the government said.
RACINE: President Trump is flagrantly violating the Constitution which explicitly bars presidents from receiving gifts or inducements from foreign or domestic government entities.
The attorneys general are also seeking the release of copies of Trump's personal tax returns to determine his involvement in foreign business dealings.