U.S. President Donald Trump stands next to Azerbaijan President Ilham Aliyev (not pictured) at the White House in Washington, D.C., U.S., August 8, 2025.
Jessica Koscielniak | Reuters
A New York state appeals court on Thursday threw out a more than $500 million civil business fraud penalty imposed on President Donald Trump.
The appeals court said that while “injunctive relief” ordered by the trial judge in the case was “well crafted to curb defendants’ business culture” at the Trump Organization, the monetary penalty, “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 lawsuit against Trump and his company, along with other defendants, was filed by New York State Attorney General Letitia James.
Manhattan Supreme Court Judge Arthur Engoron in February 2024 ordered Trump to pay around $454 million in total penalties after holding him liable for business fraud.
Engoron found that Trump’s statements of financial condition, signed between 2014 and 2021, overvalued his assets from between $812 million and $2.2 billion.
With interest, the penalty imposed on Trump and other defendants in the case has grown to more than $500 million.
CNBC has requested comment from James, the White House, and the Trump Organization on the decision, which was issued by the First Judicial Department of the New York State Appellate Division.
– Additional reporting by CNBC’s Kevin Breuninger
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