New York Attorney General Letitia James reacted with a statement after an appeals court overturned the $500 million-plus civil fraud penalty against President Donald Trump and two of his sons, while upholding a finding he engaged in fraud by exaggerating his wealth for decades.
In a statement, the attorney general said that while the penalty was overturned, “yet another court has ruled that the president violated the law, and that our case has merit.”
Why It Matters
James, a Democrat, led the court case against Trump and his companies, in which she alleged on behalf of New York that the president had overinflated his companies’ worth in order to secure loans and make deals with banks, insurers and others.
Judge Arthur Engoron ruled in favor of New York, determining that Trump had lied for years about his wealth on documents and ordered the then-former president and other defendants—including Trump’s sons Eric and Donald Jr.—to pay more than $350 million in penalties.
Associated Press
What To Know
With interest, the initial sum ordered by Engoron has now ballooned to around $572 million, which Trump’s lawyers have argued is both “draconian” and overly punitive. They immediately appealed the decision.
The appeals court, divided on the case’s merits and the trial judge’s fraud finding, ultimately threw out Engoron’s penalty in full but left the door open for further appeals to New York’s highest court, the Court of Appeals.
The court took 11 months to release its ruling after hearing oral arguments last fall, while many cases are decided in a matter of weeks or a few months.
James said in a statement: “The First Department today affirmed the well-supported finding of the trial court: Donald Trump, his company, and two of his children are liable for fraud.”
The statement continued, “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 has 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.”
Trump, who has consistently proclaimed his innocence in the case, and his sons celebrated the legal victory, writing that he had achieved “TOTAL VICTORY” over James and that he “greatly” respects the court for having “the courage to throw out this unlawful and disgraceful decision.” His sons also posted on their social media in response to the decision.
What People Are Saying
President Donald Trump wrote on Truth Social, in part: “This was a Case of Election Interference by the City and State trying to show, illegally, that I did things that were wrong when, in fact, everything I did was absolutely CORRECT and, even, PERFECT. Every single Dollar was thrown out, even the penalties imposed on us by the Corrupt Judge, one of the most overturned in History, Arthur Engoron.”
Eric Trump wrote on X: “Total victory in the sham NY Attorney General case!!! After 5 years of hell, justice prevailed!”
Donald Trump Jr. wrote on X: “Massive Win!!! New York Appeals Court has just THROWN OUT President Trump’s $500+ Million civil fraud penalty! It was always a witch hunt, election interference, and a total miscarriage of justice… and even a left leaning NY appeals court agrees! NO MORE LAWFARE!”
He later retweeted one of James’s most recent messages about the total owed by Trump and is associates, writing: “I believe you mean $0.00. Thank you for your attention to this matter.”
What Happens Next
James has said she will appeal the decision, with no indication as to when she will file the appeal nor how long the case would take to decide.
Update 8/21/25, 2:30 p.m. ET: This article has been updated with additional information.
