A New York appeals court on Thursday dismissed a $500 million civil fraud penalty against President Donald Trump and his companies for routinely overvaluing their properties in financial statements. The court ruled the fine was “excessive” and violated the Eighth Amendment of the U.S. Constitution.

Case background

The ruling stems from a 2022 lawsuit filed by the state of New York, which accused Trump of orchestrating a scheme to mislead companies he was doing business with about property values and his overall net worth. In 2023, a judge found him liable for these charges.

After determining that Trump had inflated financial statements sent to lenders and insurers, Judge Arthur Engoron ordered him to pay $355 million in penalties. With interest, the total exceeded $515 million. Addition

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