Washington( The COW News Digital)In a major legal victory for President Donald Trump, a New York appeals court on Thursday overturned a $515 million civil fraud penalty imposed against him, ruling that the sanction was excessive and unconstitutional.
The five-judge panel concluded that the fine violated the Eighth Amendment of the U.S. Constitution, which prohibits the government from imposing “excessive fines” or disproportionate punishments. After nearly 11 months of hearings, the court declared that the size of the penalty was not justified by the evidence presented.
The case was originally brought by New York Attorney General Letitia James, who alleged that Trump had deliberately inflated the value of his properties and assets to secure favorable terms from banks, insurance companies, and financial institutions. She argued that Trump’s actions amounted to large-scale financial fraud, misleading investors and gaining unfair economic benefits.
A lower court had initially fined Trump $355 million, which, with interest, grew to roughly $515 million. However, the appeals court struck down that ruling, stating that such a massive financial punishment went far beyond reasonable bounds.
“The amount ordered was disproportionate to the alleged harm and thus unconstitutional,” the panel noted in its decision. The judgment represents one of the most significant legal turnarounds in Trump’s ongoing battles with prosecutors across multiple jurisdictions.
Reacting to the decision, Trump celebrated the ruling on his social media platform Truth Social, calling it a “complete and total victory.” He argued that the lawsuit was politically motivated and amounted to “election interference” designed to damage his chances in the upcoming presidential race.
“This case was always a witch hunt,” Trump wrote. “The appeals court has now confirmed what we have been saying from the beginning — this was a political hit job.”
Despite the ruling, Attorney General James vowed not to back down. In a statement, she announced her intention to pursue further legal action, insisting that Trump’s financial practices still raise serious concerns.
The decision underscores the ongoing tug-of-war between Trump’s legal defense and prosecutors who have sought to hold him accountable for alleged business misconduct. With the appeals court ruling in his favor, Trump now heads into the election season with a renewed sense of vindication, though more courtroom battles are expected in the months ahead.
