A New York appeals court delivered a mixed verdict on Thursday, vacating a $464.6 million penalty against former U.S. President Donald Trump, which it deemed unconstitutionally excessive. The court, however, left a split decision on the underlying fraud allegations, ensuring the legal battle will continue.

The five-judge panel of the Appellate Division ruled unanimously that the nearly half-billion-dollar disgorgement award breached the Eighth Amendment of the U.S. Constitution, which safeguards against excessive fines. The decision on the fraud claims, however, showed no clear consensus among the justices.

Justice Dianne Renwick and Justice Peter Moulton supported upholding the fraud liability. Conversely, Justices John Higgitt and Llinét Rosado favored a fresh trial, while Justice David Friedman argued for complete dismissal of the case. The ultimate affirmation of the fraud findings was a result of Higgitt and Rosado siding with the majority to avoid a deadlock, enabling a definitive ruling.

While the financial penalty was overturned, some business constraints on Trump remain. These include court-ordered monitoring of his operations, although sanctions against Trump’s attorneys were dismissed.

The roots of the case trace back to a 2022 lawsuit initiated by New York Attorney General Letitia James. It was alleged that Trump’s company exaggerated asset values on financial statements from 2011 to 2021 to secure bank loans and facilitate other transactions. A New York State Supreme Court judge previously found Trump and his companies guilty of falsifying business records, issuing false financial statements, and conspiring to commit fraud and insurance fraud.

Reacting to the appeals court’s decision, Trump heralded it as a “TOTAL VICTORY” against what he termed the “FAKE New York State Attorney General Letitia James Case.” He expressed gratitude towards the court for dismissing what he considered an “unlawful and disgraceful Decision.”

On the other hand, Attorney General James announced plans to escalate the matter to the Court of Appeals, emphasizing the affirmation of fraud liability by the appeals court. She vowed to continue defending the rights and interests of New Yorkers, highlighting the court’s support for the injunctive relief her office had secured, which restricts the business activities of Donald Trump and Trump Organization officers in New York.

The outcome signifies not an end, but a new chapter in the protracted legal saga surrounding Trump, with significant implications for both his business dealings and political legacy.