A New York appellate court has thrown out the $464 million civil fraud penalty imposed on former U.S. President Donald Trump, ruling that the amount was excessive and violated the Eighth Amendment of the U.S Constitution, which prohibits excessive fines.
The fine had originally been handed down by Judge Arthur Engoron in February 2024, after finding that Trump, alongside his sons Donald Jr. and Eric Trump, had fraudulently inflated the value of assets to secure favorable loans and insurance deals.
In addition to the financial penalty, the original ruling included a three-year ban on Trump from operating any businesses in New York, a decision he had described as a “corporate death sentence.”
On Thursday, the Appellate Division of the New York Supreme Court upheld the fraud ruling itself but said the magnitude of the penalty imposed was disproportionate.
“The court agrees with the finding of fraud,” the ruling stated, “but the imposed penalty violates constitutional protections against excessive fines.”
New York Attorney General Letitia James, who filed the original suit, may still appeal the new ruling to the New York Court of Appeals, the state’s highest court.
Trump had consistently pushed back against the charges, labeling the case a politically motivated witch hunt aimed at undermining his 2024 presidential campaign. The financial penalties were already accruing interest as he pursued appeals.
Reacting to the ruling, Donald Trump Jr. celebrated the outcome on X (formerly Twitter), calling it a “massive win.”
“New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt… and even a left-leaning NY appeals court agrees! NO MORE LAWFARE!”
During the trial proceedings, which were conducted without a jury in accordance with New York state law, Trump alleged the case was being driven by the Biden administration in an effort to damage him politically.
Since the case was civil, not criminal, Trump was never at risk of jail time.
