Trump filed suit against the comic last week over a joke Maher told on The Tonight Show, where he said he would give $5 million to charity if Trump could prove he was not the result of a human cross-breeding with an orangutan.
The joke was a reference to Trump's controversial offer to give millions to charity if US President Barack Obama released his passport and college records prior to last November's election.
Trump later claimed that his lawsuit was an attempt to his avenge his parents' reputation, prompting Maher to respond on his series Real Time on Friday (February 8).
"[My comments are] known as 'parody', and it's a form of something we in the comedy business call a joke," Maher explained.
He went on to quip: "Just like we're the gun country, we're the joke country. We love our free speech and we love celebrities getting taken down a peg. So Don, just suck it up like everybody else!"
Maher went on to further criticise Trump for aligning himself with the 'Birther Movement', a political group that alleges President Obama was not born in the US.
Trump said last week that he expects his lawsuit to be successful and that he looks forward to legally forcing Maher to donate $5 million to charity.
Watch Bill Maher address the lawsuit below: