RALEIGH, N.C. — A potentially epic clash over transgender rights took shape Monday when the U.S. Justice Department sued North Carolina over the state's new bathroom law. In unusually forceful language, U.S. Attorney General Loretta Lynch said North Carolina's law requiring transgender people to use the public restroom corresponding to the gender on their birth certificate amounts to "state-sponsored discrimination" and is aimed at "a problem that doesn't exist." She said it serves only to "harm innocent Americans." Billions of dollars in state aid for North Carolina — and a potentially landmark decision regarding the reach of the nation's civil rights laws — are at stake in the dispute,...
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