New york: A New York appellate court overturned a $500 million civil fraud penalty Thursday that was imposed on US President Donald Trump, ruling the financial punishment violated constitutional protections against excessive fines. The court upheld findings that Trump and his company were liable for fraud by inflating property values to secure favorable loans and insurance. However, judges unanimously determined that the nearly half-billion-dollar penalty constituted an excessive fine that violated the Eighth Amendment to the US Constitution on excessive fines.

According to Anadolu Agency, Trump celebrated the decision on his social media platform Truth Social, calling it a "TOTAL VICTORY in the FAKE New York State Attorney General Letitia James Case!" He lauded the court's courage in overturning what he described as an "unlawful and disgraceful Decision" that was harming businesses throughout New York State. Trump claimed that the total amount, with interest and penalties, exceeded $550 million, labeling the case as "a Political Witch Hunt" and "Election Interference."

South Carolina Attorney General Alan Wilson stated that his office led a multi-state brief supporting Trump, joined by 14 other states, arguing that the judgment was unconstitutional under the Eighth and Fourteenth Amendments protections. The Fourteenth Amendment guarantees due process. Wilson termed the penalty "a blatant abuse of power and a weaponization of the justice system."