A New York state appeals court has overturned a nearly $500 million civil penalty imposed in 2023 on former President Donald Trump, his company, and his children. The ruling stated that the fine was excessive, violating constitutional limits on disproportionate penalties.

Although the financial sanction was revoked, the court confirmed that there is solid evidence that Trump and his associates exaggerated asset values to obtain better financial terms. However, judicial restrictions, such as the ban on holding executive positions in companies registered in New York, remain in effect for now.

The decision comes amid a tense political climate: Trump hailed the ruling as a “total victory,” while Attorney General Letitia James confirmed that she will take the case to the state’s Supreme Court.

What impact does this decision have on Donald Trump’s legal future?

The ruling temporarily removes a heavy financial burden, strengthening his political standing and allowing him to regain some business flexibility. However, the recognition of fraud keeps the legal battle alive and preserves restrictions on his corporate capacity, pending further trials or appeals.