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Trump's civil fraud penalty is thrown out by New York appeals court

  • On Thursday, a New York appeals court dismissed the nearly $500 million penalty against Donald Trump related to fraud claims, but maintained that he is still responsible for fraudulent actions.
  • The court found Judge Engoron's disgorgement order excessive and unconstitutional, while Trump and co-defendants denied wrongdoing and claimed political motivation.
  • The case stems from a suit by Attorney General Letitia James accusing Trump of inflating his wealth to secure better loan terms, with penalties also levied on his sons.
  • Judges wrote the injunctive relief curbs the defendants' business culture, but the $515 million fine violates the Eighth Amendment as an excessive punishment.
  • The ruling allows further appellate review, keeps Trump’s fraud liability intact, and pauses corporate leadership bans during appeal while Trump's legal battles continue.
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A New York Court of Appeal upheld the billionaire's conviction for fraud, handed down in 2024, but found the amount of the fine excessive.

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The U.S. President is celebrating another legal success, even though the court has confirmed that he has cheated.

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Newsweek broke the news in United States on Thursday, August 21, 2025.
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