❓WHAT HAPPENED: A New York appellate court on Thursday threw out the state’s massive civil fraud penalty imposed on President Donald J. Trump.
👤WHO WAS INVOLVED: President Donald J. Trump, Judge Arthur Engoron, New York Attorney General Letitia James, and a New York appeals court.
📍WHEN & WHERE: Thursday, August 21, 2025.
💬KEY QUOTE: “While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” the appeals panel wrote.
🎯IMPACT: Prior to today’s ruling, the penalty against Trump stood at an estimated $527 million, including accrued interest.
A New York appellate court on Thursday threw out the state’s massive civil fraud penalty imposed on President Donald J. Trump. The case, brought by New York Attorney General Letitia James (D), alleged that Trump and the Trump Organization, including sons Eric and Donald Jr., fraudulently misrepresented Trump’s wealth and property values to secure favorable loan and insurance terms. Last year, far-left New York Judge Arthur Engoron, a Democrat donor, imposed a $454 million civil judgment against Trump, as well as other legal sanctions against him, his sons, and the Trump Organization.
The panel of five Appellate Division judges determined that Judge Engoron’s penalties were “excessive” in nature. Legal commentators have held throughout the process that the penalties against President Trump were unusual, as the type of fraud case brought against him had no prior legal precedent.
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, which directs that defendants pay nearly half a billion dollars to the State of New York, is an excessive fine that violates the Eighth Amendment of the United States Constitution,” the appeals panel wrote.
Prior to today’s ruling, the penalty against Trump stood at an estimated $527 million, including accrued interest.
Join Pulse+ to comment below, and receive exclusive e-mail analyses.