New York Attorney General Letitia James is pressing forward in her high-stakes legal battle against President Donald Trump, filing an appeal to reinstate a massive civil fraud penalty that has now ballooned past $500 million with interest.
The move, filed Sept. 4, sends the case to the New York Court of Appeals, the state’s highest court, and gives judges there the final say on whether Trump and others should be held financially liable.
Appeal Challenges August Ruling
The appeal follows an Aug. 21 decision from a Manhattan appellate court that tossed out the original $454 million penalty, finding that parts of the lower court’s ruling may have been unconstitutional or procedurally flawed.
While the appellate panel struck down the penalty, it upheld Judge Arthur Engoron’s earlier finding that Trump had inflated the value of his assets for years to secure favorable loans and insurance terms.
It also left in place restrictions on Trump’s business operations in New York and the requirement for an independent monitor to oversee the Trump Organization.
Competing Reactions
After the August ruling, Trump called the decision a “TOTAL VICTORY” on his Truth Social platform, again describing the case as a “political witch hunt.”
James, however, stressed that the ruling still validated the state’s case. “It should not be lost to history: yet another court has ruled that the president violated the law, and that our case has merit,” she said at the time.
Her office has declined to comment further on the ongoing appeal.
What’s at Stake
The appeal means the New York Court of Appeals will now decide whether Trump must pay one of the largest fraud penalties ever levied against an American businessman.
If reinstated, the penalty plus accumulated interest would exceed half a billion dollars, a sum with the potential to shake Trump’s personal and business finances as he navigates multiple legal battles while campaigning for political office.
The White House has not commented on the development.
