Somebody might want to check on New York Attorney General Letitia James. An appeals court just threw out the $500 million civil fraud penalty against President Donald Trump that resulted from James’ lawsuit against him during the 2024 campaign.
From the Wall Street Journal:
The decision from a five-judge panel provides a significant legal boost for Trump in the case, which was brought by New York Attorney General Letitia James.
“The court’s disgorgement order, 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,” Justice Peter Moulton wrote in one of three opinions, none of which commanded a majority.
James, a Democrat, sued Trump in September 2022. She said her office had uncovered “incredible fraud and illegality,” alleging that Trump, his two eldest sons and former Trump Organization executives had lied to lenders to get cheaper real estate financing.
Her lawsuit claimed that Trump’s financial statements systematically overestimated the value of his marquee Manhattan skyscrapers, golf courses and other properties in financial statements to lenders.
A New York Appeals Court just tossed the $500 million penalty against President Donald Trump.
— Hotep Jeffiziah Charles🏴 (@jeffcharlesjr) August 21, 2025
The fine came after New York Attorney General Letitia James sued him for civil fraud during the 2024 campaign.
Well, this didn't work out so well for her, did it? pic.twitter.com/StBq4PlY1t
James filed the lawsuit against Trump in September 2022, claiming that Trump, his company, his three eldest children, and others had engaged in a decades-long scheme to “falsely inflate his net worth by billions of dollars.”
The attorney general accused Trump of providing false information to secure favorable loan conditions, insurance terms, tax benefits, and continued access to credit by misrepresenting the size and values of his assets.
After an 11-week trial that wrapped up in early 2024, anti-Trump Judge Arthur Engoron found the president and his associates liable for fraud. He ordered a $354 million penalty, along with interest, which brought the total to just under $500 million.
The judge also imposed a three-year ban on Trump barring him from serving as an officer or director of his New York companies. He also prohibited him from receiving loans from New York financial institutions and mandated government supervision of the Trump Organization.
Unfortunately for James and Engoron, the appeals court understood that the penalty was far too harsh.
The lawsuit was one of several efforts Democrats made to influence the outcome the 2024 election by weaponizing the legal system against Trump.
Meanwhile, James is facing her own investigation into allegations of mortgage fraud.