Trump wins partial ruling on civil fraud case

An appeals court in New York voided a nearly 515 million civil penalty against the president, signaling ongoing legal battles.

New York appeals court tosses 515 million civil fraud penalty against Trump

An appeals court in New York on Thursday tossed out the nearly 515 million civil fraud penalty against President Donald Trump, calling the amount excessive under the Eighth Amendment. The five-judge panel did not overturn the lower court’s finding that Trump and his co defendants had misrepresented wealth, but it dismissed the disgorgement remedy and left room for further review of the lower court’s ruling. The lower court had originally ordered about 355 million in penalties, a figure that grew with interest to roughly 515 million.

Trump applauded the decision on Truth Social, calling it a total victory while arguing the case was politically motivated. New York Attorney General Letitia James’s office said it intends to appeal, arguing the fraud findings still merit scrutiny and that the state will continue to pursue accountability.

The ruling highlights a clash between punitive remedies and constitutional limits. By voiding the financial penalty but not fully overturning the fraud findings, the court preserves a prosecutorial stance while avoiding a crippling monetary sanction. The split opinions among the panel members also reveal a broader debate about how far civil penalties should go in cases involving high-profile figures.

The decision keeps the case alive in the courts and preserves a public theater around Trump’s business practices. It may influence how future civil penalties are crafted in white-collar cases, especially when public interest and political pressure intersect with legal standards.

Highlights

The legal story is far from finished and will continue to unfold in multiple courts.