New York — A state appeals court has thrown out a more than $500 million civil fraud penalty against U.S. President Donald Trump, ruling that the fine was excessive and unconstitutional.
In a 323-page ruling, a five-judge panel of the Appellate Division of the New York Supreme Court said the penalty imposed in February 2024 violated the Eighth Amendment, which prohibits excessive fines.
The case stemmed from a 2022 lawsuit filed by New York Attorney General Letitia James, who alleged that Trump and his company overstated property values and assets to secure favorable bank loans and insurance terms. In February 2024, a trial court found Trump had unlawfully inflated his wealth, ordering him to pay more than $500 million plus interest. His sons, Donald Trump Jr. and Eric Trump, were also penalized.
Trump celebrated the ruling on Truth Social, calling it a “total victory” and praising the court for “having the courage to throw out this unlawful and disgraceful decision that was hurting business all throughout New York State.”
The Wall Street Journal described the decision as a major legal boost for Trump, relieving him from a penalty that had caused significant financial strain last year. Analysts note the case remains politically charged, reflecting the deep entanglement of legal battles and Trump’s ongoing presidency.
