A New York appeals court threw out the roughly $500 million civil fraud penalty against President Trump on Thursday, but it declined to toss the case entirely.

It deals a significant blow to New York Attorney General Letitia James’s (D) sprawling case against the president and his business.

In a deeply divided decision, the court upheld a lower court’s finding that Trump, his eldest sons and another executive conspired to alter his net worth for tax and insurance benefits.

However, the eye-popping financial penalty against the president and his business will not stand, with the judges saying it amounts to an unconstitutional excessive fine. The ruling enables the case to move toward New York’s top court.

The case, brought in 2022, made James one of the president’s most prominent advers

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