Overview

• A five-judge Appellate Division panel vacated the roughly $515 million disgorgement, finding it unconstitutional under the Eighth Amendment’s excessive-fines clause.
• The court preserved the underlying fraud liability, with certain business restrictions and monitoring either in place or paused while parties may seek extensions of any stays.
• Judges issued more than 300 pages of concurring and dissenting opinions, reflecting a split decision with no single majority on all issues.
• New York Attorney General Letitia James signaled plans to seek review at the New York Court of Appeals, and the ruling leaves a clear path for further appeals.
• Trump celebrated the decision as a victory; he had posted a $175 million bond to stay collection, and combined penalties against all defendants had grown to more than $527 million with interest.