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New York Appeals Court Tosses $500M Penalty Against Trump in Civil Fraud Case

Judges Strike Down Half-Billion Dollar Fine But Keep Trump Liable for Fraud

thinktank by thinktank
August 21, 2025
in News
Reading Time: 1 min read
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A New York appeals court just gave Donald Trump some financial relief, tossing out the nearly half-billion dollar penalty tied to his civil fraud case. While this ruling wipes away the massive fine, it doesn’t clear him of wrongdoing.

The court found that the $500 million judgment originally ordered by New York Attorney General Letitia James was excessive, saying it violated the Eighth Amendment’s ban on extreme financial penalties. However, the judges agreed Trump is still liable for fraud, meaning the case continues.

Legal experts called the decision unusual, noting it took almost a year for the court to issue its ruling. CNN analyst Elie Honig described it as a “huge win” for Trump and a major blow to Attorney General James.

Trump’s former lawyer Alina Habba also celebrated the decision, calling it a “resounding victory.” Still, the legal battles are far from over as the case moves through further appeals.

Donald Trump won big in a New York appeals court after judges threw out his $500 million fraud penalty, ruling the fine was excessive. But here’s the catch—Trump is still on the hook for fraud. Legal analysts say it’s a big victory for Trump and a major setback for Attorney General Letitia James. Do you think this changes his image, or does the fraud ruling overshadow the win?

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