A New York state appeals court has thrown out a $500 million civil business fraud penalty imposed on U.S. President Donald Trump in connection with a lawsuit by state Attorney General Letitia James.
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The appeals court said that the penalty, “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.”
However, the appeals court added that other non-monetary sanctions imposed by a Manhattan Supreme Court judge on Trump, the Trump Organization, and other defendants were “well crafted to curb defendants’ business culture.” Attorney General James said she plans to take the matter all the way to New York’s highest court.
‘Total Victory’
President Trump expressed his joy at the appeals court ruling. On social media, he wrote: “TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!… I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State.”
Manhattan Supreme Court Judge Arthur Engoron in February 2024 ordered Trump to pay $454 million in penalties after holding him liable for business fraud. Engoron found that Trump’s financial statements signed between 2014 and 2021 overvalued his assets by $812 million to $2.2 billion. With interest, the penalty imposed on Trump in the case had grown to about $500 million.
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