A New York appeals court on Thursday struck down the $500 million civil fraud judgment against President Donald Trump and his companies, ruling the penalty was excessive.
The mid-level state Appellate Division upheld Judge Arthur Engoron’s earlier findings that Trump and his businesses engaged in fraud but rejected the massive financial penalty imposed in February 2024. Engoron had originally ordered Trump to pay more than $350 million in disgorgement, a figure that had ballooned past $500 million with interest.
The divided appellate ruling significantly reduces the financial threat posed by New York Attorney General Letitia James’ case. While the fraud findings stand, the court concluded the damages went beyond what was legally appropriate.
James had pursued the case, alleging Trump inflated asset values to secure loans and insurance deals. The decision marks the latest legal development in the high-stakes case that has shadowed Trump’s business empire throughout his second term.
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