Trump seeks to overturn $500 million civil fraud verdict citing statute of limitations violation

Sponsored Ad

Former President Donald Trump’s legal team appeared before a New York City appeals court on Thursday, arguing that a nearly $500 million civil fraud judgment against him should be overturned. Trump's lawyer, D. John Sauer, contended that the case, led by Attorney General Letitia James, violated the statute of limitations and that the substantial penalty was not justified. He claimed that the legal action, which focused on the Trump Organization’s financial statements, was not filed in time.

During the one-hour hearing, the panel of judges appeared sympathetic to the argument, with one judge questioning whether James' lawsuit had gone beyond its intended scope. The $454 million judgment, stemming from claims that Trump inflated his assets to secure favorable loans and insurance rates, was a key issue.

Attorney General James has pursued Trump for years, and her office's lawsuit is based on New York Executive Law Section 63(12), a statute criticized for its broad application.

New York Deputy Solicitor General Judith Vale, representing James, pushed back, citing harm to the public and the market, including concerns raised by Deutsche Bank, which ended its relationship with Trump around the time of James’ investigation.

The court's ruling on this appeal could come before the next presidential election, where Trump is running for a second term. If the decision goes against him, Trump could appeal to the New York Court of Appeals, the state’s highest court.