New York Court Voids $500M Trump Penalty, Upholds Liability

President Donald Trump secured a major appellate victory when the New York Court of Appeals canceled a $500 million civil penalty imposed on him for allegedly inflating the value of his assets to obtain favorable loan and insurance terms. While the court upheld the findings that Trump and his company were liable for fraud, it ruled the fine excessive and unconstitutional under the Eighth Amendment. As a result, Trump no longer owes the $355 million fine plus interest, though he and his two sons remain barred from serving as executives in certain corporations for several years. Trump condemned the original ruling as a political witch hunt and called the appellate decision a “complete victory,” accusing New York Attorney General Letitia James of political motivations. The ruling was seen as a significant defeat for James, who continues to face scrutiny amid other investigations. Despite escaping the hefty financial penalty, Trump’s culpability in misleading about his property valuations was affirmed by the court.