In a major legal win for Donald Trump, a New York state appeals court on Thursday overturned a $500 million penalty but kept the underlying fraud case alive. The ruling allows Trump to recover from a significant legal setback.
The closely split decision by Manhattan’s Appellate Division is a setback for New York Attorney General Letitia James, whom Trump claims used the lawsuit to block his second presidential bid.
Background of the Case
In February 2024, a trial judge imposed the $500 million penalty, finding that Trump had inflated his wealth and property values to benefit his family business. Trump denied wrongdoing, with his lawyers arguing that any reporting errors were irrelevant since no one was harmed.
Appeals Court Ruling
The five-member appeals court ruled as follows:
- Four judges agreed to keep the fraud finding, though two would have ordered a new trial due to errors in the judge’s handling of the case.
- One judge would have dismissed the case entirely.
- All five judges canceled the $500 million penalty.
The original judgment against Trump, his adult sons, and a former Trump Organization executive totaled $464.6 million, with Trump personally liable for $454.2 million. With interest, the amounts have grown to $527 million and $515.2 million, respectively.
Trump Reacts
Trump celebrated the ruling on social media, calling it a “TOTAL VICTORY.”
“I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision,” he wrote.
