Donald Trump Celebrates Legal Win Against Letitia James

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Khaleda Rahman is Newsweek’s National Correspondent based in London, UK. Her focus is reporting on education and national news. Khaleda joined Newsweek in 2019 and had previously worked at the MailOnline in London, New York and Sydney. She is a graduate of University College London. Languages: English. You can get in touch with Khaleda by emailing k.rahman@newsweek.com

National Correspondent

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President Donald Trump hailed his “big win” over New York State Attorney Letitia James after an appeals court overturned the $500 million-plus civil fraud penalty against him and two of his sons.

Trump called James “totally corrupt and incompetent” and lashed out at “her equally incompetent, hand picked, New York State Judge” in a post on Truth Social in the early hours of Friday morning.

“The 5 to 0 Verdict from the Appellate Division helps greatly to save the status and reputation of the New York Judicial System,” Trump said, calling James “a criminal who should be forced to resign!”

Why It Matters

James, a Democrat, had filed a sweeping civil fraud lawsuit in 2022 against Trump, the Trump Organization, and his adult sons, Donald Trump Jr. and Eric Trump, alleging they inflated property values to secure favorable loans and insurance terms.

Judge Arthur Engoron, who oversaw the civil trial, ordered Trump last year to pay $355 million in penalties after finding he flagrantly padded financial statements provided to lenders and insurers. With interest, the sum topped $515 million. Additional penalties for other executives at the Trump Organization, including Trump’s sons, brought the total to $527 million with interest.

Thursday’s ruling from the appeals court spares Trump from paying the hefty financial penalty, but it still bars him and his two eldest sons from serving in corporate leadership for a few years.

What To Know

The five-judge panel of the New York Appellate Division ruled that the monetary penalty was excessive.

“While harm certainly occurred, it was not the cataclysmic harm that can justify a nearly half billion-dollar award” to the state, Judges Dianne Renwick and Peter Moulton wrote in one of three opinions that shaped the ruling.

They called the penalty “an excessive fine that violates the Eighth Amendment of the United States Constitution.” Both were appointed by Democratic governors.

Engoron’s other punishments, upheld by the appeals court, have been on pause during Trump’s appeal. He was able to hold off collection of the money by posting a $175 million bond.

What People Are Saying

President Donald Trump wrote in a lengthy post on Truth Social on Thursday: “TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case! I greatly respect the fact that the Court had the Courage to throw out this unlawful and disgraceful Decision that was hurting Business all throughout New York State. Others were afraid to do business there. The amount, including Interest and Penalties, was over $550 Million Dollars. It was a Political Witch Hunt, in a business sense, the likes of which no one has ever seen before.”

New York Attorney General Letitia James said in a statement posted on X: “The court upheld the injunctive relief we won, limiting Donald Trump and the Trump Organization officers’ ability to do business in New York. It should not be lost to history: yet another court ruled that the president violated the law, and that our case has merit.

“We will seek appeal to the Court of Appeals and continue to protect the rights and interests of New Yorkers.”

What Happens Next

James has said she will appeal to the state’s highest court, the Court of Appeals.

Meanwhile, Trump and his co-defendants can seek to extend the pause on any punishments taking effect, which were put on hold during the appeals process.

This article includes reporting by the Associated Press.