A New York appellate court has thrown out the USD $500 million civil fraud penalty against Donald Trump in Attorney General Letitia James’ case, ruling the disgorgement violated the Eighth Amendment’s ban on excessive fines.
While the panel upheld findings that Trump and his company engaged in fraud and affirmed James’ authority to act, it struck down the massive financial penalty, leaving only injunctive relief in place to limit Trump Organization practices.
Trump hailed the decision as a “total victory,” while Justice David Friedman, in a partial dissent, argued the entire case was politically motivated and should be dismissed.
The ruling is expected to move to New York’s highest court for further review.
