A New York appeals court has overturned the nearly $500 million civil fraud penalty imposed on former President Donald Trump, though it upheld findings that he and his company engaged in fraudulent practices.
The split decision, delivered Thursday, struck down the massive financial judgment but allowed the case to proceed through further appellate review. New York Attorney General Letitia James vowed to challenge the ruling before the state’s highest court.
In their opinion, the judges wrote: “While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order … is an excessive fine that violates the Eighth Amendment of the United States Constitution.”
The ruling significantly eases Trump’s financial burden. A February 2024 judgment had initially set the penalty at $354 million, which swelled to nearly $500 million with interest. Trump, who previously posted a $175 million bond to delay collection, is now expected to recover those funds while the case continues.
Despite the relief on penalties, the court reaffirmed that Trump, his company, and two of his children were liable for fraud, citing years of overstated financial statements used to mislead lenders and insurers.
Attorney General James emphasized that the core of her case was validated: “Yet another court has ruled that the president violated the law, and that our case has merit.”
Trump celebrated the outcome, calling it a “total victory” and denouncing the case as politically motivated. His legal team argued the ruling confirmed that the original penalty was “grossly excessive.”
The civil lawsuit, filed by James in 2022, alleged systematic inflation of property values to secure favorable loans and insurance terms. The appeals panel issued multiple opinions spanning 322 pages, with some judges suggesting a retrial and others rejecting the need.
Further appeals are expected, leaving the ultimate resolution of the case still uncertain.
0 Comments