New York appeals court throws out $500M fraud penalty against Trump

A New York state appeals court has overturned a nearly $500 million penalty imposed on Donald Trump after a judge found that he fraudulently overstated the value of his properties and other assets to bolster his family business. The appeals court upheld the fraud judgment but ruled that the penalty was excessive and violated the US Constitution.

In a split decision, the five-judge panel of the Appellate Division in Manhattan agreed that Trump was properly held liable, but disagreed on the penalty. Two judges found Trump liable and supported the Attorney General's pursuit of the case, citing the public interest it served. However, they deemed the penalty excessive.

Trump attorney Christopher Kise said "The reality here is that President Trump was always worth even more than what was reflected in the financial statements and the New York Attorney General simply disregarded well established principles of property valuation in an effort to justify her abusive and politically motivated case."

New York Attorney General Letitia James plans to appeal the ruling.