Appeals Court Overturns $500M Trump Judgment; Case Moves to New York’s Highest Court

The high-profile case now moves on to New York’s highest court after an appeals court on Thursday threw out a more than $500 million judgment against President Donald Trump and his business empire. The court’s decision was split.

Three distinct opinions totaling 323 pages were delivered by the five-judge panel; none of them received a majority. The decision gives Trump short-term relief from a hefty financial penalty linked to fraud claims made against the former Republican president by Democratic New York Attorney General Letitia James. “While harm undoubtedly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award to the State,” wrote Justice Peter Moulton.

“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,” Trump wrote on Truth Social, referring to the decision as a “TOTAL VICTORY.” A request for comment was not immediately answered by the attorney general’s office.

Context

The case is based on a civil lawsuit filed in 2022 by New York Attorney General Letitia James, who charged Trump, his family, and the Trump Organization with inflating the value of real estate assets in order to obtain insurance and loans on more favorable terms. A lower court judge last year temporarily barred Trump from doing business in New York and ordered him to pay more than $500 million in fines.

Trump’s legal team cited James’ public remarks about targeting the former president during her election campaign to argue that the penalties were disproportionate and politically motivated. Although Trump is not exonerated of any wrongdoing, the appeals court’s ruling considerably lessens the operational and financial burden on his company while the case is pending.

The legal dispute, which reflects the larger political and legal conflicts between Trump and Democratic officials in New York, has grown to be one of the most significant civil enforcement actions against a former U.S. president.

What comes next: The matter will now go to the highest court in the state, the New York Court of Appeals, where it will be decided whether Trump is liable or not and what will happen to the attorney general’s claims.