In win for Trump, court throws out civil fraud penalty

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By Sara Merken

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REUTERS/Leah Millis/File Photo

In a triumph for Donald Trump, a New York state appeals court threw out a half-billion-dollar penalty while preserving a fraud case against him, enabling the U.S. president to rebound from one of his biggest legal defeats.

The deeply divided decision by the Appellate Division in Manhattan is also a defeat for New York Attorney General Letitia James, one of Trump's biggest foes, who he accused of bringing the civil fraud lawsuit to advance a political witch hunt and deny him a second White House term.

A trial judge had ordered the penalty in February 2024 after finding that Trump fraudulently overstated his wealth and the value of his properties to bolster his family business. Trump denied wrongdoing, and his lawyers argued that any errors in reporting Trump's fortune to his lenders and business partners were irrelevant because none was harmed.

Four judges on the five-member appeals court voted to let the fraud finding stand, but all found problems in the judge's handling of the case and two would have ordered a new trial. A fifth judge would have dismissed the case altogether, and all five judges would have voided the payout. There was no majority opinion.

Read more about the decision from Jonathan Stempel and Luc Cohen.

REUTERS/Andrew Kelly/File Photo

The CFPB kicked off a do-over of its "open banking" regulations governing consumer control over the sharing of personal data between banks and the burgeoning financial technology sector as the two industries feud over proper controls and access.

The decision marked an about-face amid public pressure from fintech firms and crypto entrepreneurs whose fortunes have soared since President Trump returned to the White House this year. Read the story here.

The U.S. Federal Reserve's pivot toward the labor market in 2020 will get a reboot tomorrow when Fed Chair Jerome Powell is expected to release a new framework for the central bank … Walmart's results show U.S. consumers across the spectrum are still flocking to the retailer's stores despite economic headwinds … Chinese artificial intelligence startup DeepSeek released an upgrade to its flagship V3 model. Plus, a look at how U.S. alcohol tariffs may hurt some businesses and hike prices for Americans.

sara.merken@thomsonreuters.com

@saramerken

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