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6h ago

New York Appeals Court Vacates Trump’s Half-Billion-Dollar Civil Fraud Penalty

The divided panel found the disgorgement unconstitutional under the Eighth Amendment.

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In the initial ruling against Trump, Engoron ordered the US President to pay a civil penalty of $464 million, including interest.
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Overview

  • The Appellate Division threw out the roughly $515 million disgorgement imposed after Judge Arthur Engoron’s 2024 fraud ruling, calling it an excessive fine.
  • Non-monetary remedies, including bans on Trump and his sons serving as corporate officers and other business restrictions, remain in place or subject to continued pauses during further appeals.
  • The five-judge panel issued 323 pages of concurring and dissenting opinions with no single majority, with some judges upholding fraud findings and others urging a new trial or dismissal.
  • The ruling followed an unusually long deliberation of nearly 11 months and leaves a path for review by New York’s Court of Appeals, which the state is expected to seek.
  • Trump labeled the decision a “TOTAL VICTORY,” while a Justice Department subpoena for records from Attorney General Letitia James related to the case remains an active development.