[UPDATE Thursday, Aug. 21, 11:50 a.m.]
The Appellate Division, First Judicial Department, has yet to post its decision on its website, but the AP, which appears to have seen the decision, clarified that the decision is only a partial renunciation of NYAG Letitia James and Judge Arthur Engoron's legal railroading:
A New York appeals court on Thursday threw out President Donald Trump’s massive civil fraud penalty while upholding a judge’s finding that he exaggerated his wealth for decades. The ruling spares Trump from a potential half-billion-dollar fine but bans him and his two eldest sons from serving in corporate leadership for a few years.
[ORIGINAL ARTICLE]
After taking an unprecedentedly long time to announce a decision, the Appellate Divisions of the Supreme Court of New York State have FINALLY done the right thing and overturned the weaponized, despicable civil fraud decision against President Donald Trump.
I have been compulsively stalking the Appeals Court's First Judicial Department's website for months now, waiting for this decision to be announced, no matter how it came down. It has obviously been a painful and difficult journey for the five-judge panel, and even as I type, they haven't been able to bring themselves to post their own decision. The TDS is strong in NYC, but the magnificent news is seeping out nonetheless.
Well-connected legal expert Jonathan Turley first broke the rumor of an announcement on X at 10:48 a.m. Eastern on Thursday:
There are reports that the New York appellate court has tossed out the absurd civil judgment against Donald Trump. If true, it is great news for the New York court system in regaining some of the credibility lost during this litigation...
— Jonathan Turley (@JonathanTurley) August 21, 2025
The AP broke the story moments later:
An appeals court has thrown out the massive civil fraud penalty against President Donald Trump, ruling Thursday in New York state’s lawsuit accusing him of exaggerating his wealth.
The decision came seven months after the Republican returned to the White House. A panel of five judges in New York’s mid-level Appellate Division said the verdict, which stood to cost Trump more than $515 million and rock his real estate empire, was “excessive.”
After finding that Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, Judge Arthur Engoron ordered him last year to pay $355 million in penalties. With interest, the sum has topped $515 million.
The disgrace and injustice of New York Attorney General Letitia James and Judge Arthur Engoron teaming up to maliciously persecute and try to destroy a past president couldn't be overturned soon enough.
Exclusively for our VIPs: Why Is It Taking So Long for the NY Court to Decide Trump's Fraud Appeal?
“While the injunctive relief ordered by the court is well crafted to curb defendants’ business culture, 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,” noted Judges Dianne T. Renwick and Peter H. Moulton in their opinion.
This is a developing story. Please check back here for updates.
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