Appeals court tosses $500 million fine in N.Y. case against Trump, upholds fraud finding

NEW YORK — A New York appeals court on Thursday threw out the massive civil fraud penalty against President Donald Trump, calling the roughly $500 million verdict against him and his real estate empire “excessive” while upholding a lower court’s finding that fraud was committed.

The ruling by a split, five-member panel of New York’s First Department Appellate Division was made public Thursday, months after the court heard arguments from state lawyers and attorneys for Trump.

New York Attorney General Letitia James won the civil case against Trump, his company, two of his adult children and two former executives last year when a state court judge determined that they collectively committed a long-running fraud and that specific illegal acts were employed including falsification of business records, conspiracy and insurance fraud.

The Justice Department is investigating James for allegedly weaponizing her position by bringing the wide-ranging fraud case which plagued Trump in 2024 as he ran for a second term.