OAN Staff Abril Elfi
1:11 PM – Thursday, August 21, 2025
President Donald Trump scored a major legal win after a New York appeals court dismissed the over $500 million fraud fine he faced, which had been sought by Attorney General (AG) Letitia James.
On Thursday, the Appellate Division, First Department, overturned the initial $464 million judgment against Trump — which had grown to $515 million due to interest — stemming from allegations that he had fraudulently inflated his net worth by billions over a decade to secure more favorable loans and insurance terms.
However, much of the lawsuit against Trump, brought by New York Attorney General James, still remains active and will now be reviewed by the state’s highest court, as the legal battle between the state’s top lawyer and the nation’s 47th president continues.
While the financial penalty was overturned, the court still upheld the ruling that Trump and his family company engaged in fraudulent practices.
The 323-page decision included three separate opinions, but all agreed that the hefty fine against Trump was “excessive.”
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, the court’s disgorgement order, 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,” the main opinion by Judges Dianne T. Renwick and Peter H. Moulton read.
Still, the five-judge bench upheld a ban on Trump and his two eldest sons, Donald Trump Jr. and Eric Trump, from running a business in New York for several years. In addition, the court upheld a three-year order for an outside monitor to watch and report on The Trump Organization’s financial dealings.
President Trump was required to post a $175 million bond to stay the enforcement of the judgment during the appeal process.
Since there was no majority reached in Thursday’s judgment, the case is immediately eligible to be addressed by the Empire State’s highest court, the New York Court of Appeals.
James has consistently accused Trump and others in his circle of carrying out “staggering fraud.” However, Trump has maintained his innocence, arguing that he was a target of the AG’s politically-motivated prosecution.
Trump later praised the ruling in two posts on Truth Social, repeating his assertion that the case was a “political witch hunt.”
“TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!,” Trump posted. “I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business throughout New York State.”
Meanwhile, James also released a statement — though she glossed over the fact that the financial judgment was vacated — playing the decision off as a victory as well.
“The First Department today affirmed the well-supported finding of the trial court; Donald Trump, his company, and two of his children are liable for fraud.”
The N.Y. AG also noted that her office would be appealing the dropped fine.
The Department of Justice (DOJ) subpoenaed James earlier this month as part of an investigation into civil rights violations. Acting U.S. Attorney for the Northern District of New York John Sarcone has since issued two subpoenas to James.
While one pertains to her office’s civil fraud lawsuit against Trump, sources familiar with the matter also informed The New York Times that the second subpoena concerns a separate, longstanding investigation by her office involving the National Rifle Association (NRA).
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