New York appeals court overturns $500mn penalty in Trump civil fraud case

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A New York court has overturned a roughly $500mn penalty against Donald Trump in a landmark civil fraud case, ruling that one of the most severe civil penalties in US history was excessive.

Judges at New York’s second-highest appeals court said on Thursday they were vacating a “disgorgement award”, in a case that had centred on allegations that Trump and people connected to him fraudulently inflated the value of real estate assets in representations to banks.

“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order . . . is an excessive fine that violates the Eighth Amendment of the United States Constitution,” Justice Peter Moulton wrote in an opinion in which the other judges concurred in whole or part.

The appellate panel did not overturn the lower court’s verdict that Trump and other defendants, including his son Eric and some Trump companies, were liable for civil fraud.

Letitia James, New York’s attorney-general, who brought the original case, said she would appeal to the state’s highest court.

Still, the decision marks a significant victory for Trump in what had been one of his remaining legal headaches after other cases against him were dropped or derailed upon his return to the White House.

“TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!”, Trump wrote on his Truth Social platform shortly after the court’s decision. “A GREAT WIN FOR AMERICA!!!”