New York Attorney General Letitia James has appealed a court decision that overturned hefty penalties against President Trump and his business, while leaving the underlying civil fraud case against him mostly intact.
On Thursday, her office filed a Notice of appeal, signaling plans to contest a mid-level appellate court ruling that removed about $500 million in penalties, although it upheld the overall findings of the lower court.
A judge from the state appellate department delivered a divided opinion last month, supporting a previous ruling which found that Trump, along with his eldest son and others, had manipulated his net worth for tax and insurance advantages.
The appellate court, led by Financial Criminal Judge Arthur Ngoron, criticized the original penalty against Trump as excessively harsh. That ruling initially resulted in a total judgment of $464 million, with interest bringing it to approximately $527 million before it was vacated.
The court observed that “a surprising situation requires a surprising solution,” but none of the three opinions achieved majority agreement.
This sets the stage for the case to advance to the New York Court of Appeals, which serves as the state’s highest court.
James’s office provided a brief notice regarding the appeal without detailing the rationale for contesting the earlier decision.
Trump and his sons also reacted to the ruling when it was first published, expressing satisfaction with it. They referred to it as “a complete victory” and “a great victory.” The mid-level court’s ruling did include other sanctions, barring Trump and his sons from significant roles in New York businesses for the time being.
James initiated the lawsuit against Trump and his business in 2022, which posed risks to his reputation as a real estate tycoon, jeopardized his billionaire status, and introduced uncertainty into his business ventures.
In the meantime, James has emerged as one of Trump’s principal adversaries, even as the Department of Justice looks into her office and her personal real estate dealings.
So far, a spokesperson for James’s office has not commented on the appeal. Efforts to reach Trump’s legal team for feedback have been made.
