A New York appeals court has overturned a civil fraud penalty exceeding $500 million levied against President Donald Trump and the Trump Organization.
According to CNBC, the court upheld the trial court’s injunctive relief that is meant to reform “business culture,” but ruled that the monetary penalty violates the Eighth Amendment as an excessive fine.
Trump’s massive $500M civil fraud fine in AG Tish James’ case thrown out by NY appeals court https://t.co/q1fdjPl9Ht pic.twitter.com/nkf365D8Ql
— New York Post (@nypost) August 21, 2025
The original lawsuit, brought by New York Attorney General Letitia James, resulted in a February 2024 judgment by Manhattan Justice Arthur Engoron.
🚨BREAKING: A New York Appeals Court has just THROWN OUT President Trump's $364 Million civil fraud penalty!
— Gunther Eagleman™ (@GuntherEagleman) August 21, 2025
HOLY CRAP this is HUGE!
This is the ruling from the CORRUPT Judge Engoron brought by none other than Letitia James.
The commies are LOSING! pic.twitter.com/0ATN7Kc16o
Engoron found that Trump had inflated the value of his assets by $812 million to $2.2 billion between 2014 and 2021. With accumulated interest, the total penalty grew to over $500 million.
New York appeals court voids $500 million penalty against Trump in the civil fraud case brought by the state's attorney generalhttps://t.co/y73mwMlihD
— CNN (@CNN) August 21, 2025
The New York Appellate Division’s First Judicial Department issued the reversal.
CNBC also reported that comments were requested from Attorney General James, the White House, and the Trump Organization.
