Trump was sued by New York over inflated financial statements used for favorable terms from lenders and insurers

An appeals court has thrown out the massive civil fraud penalty against Donald Trump, ruling on Thursday in New York state’s lawsuit accusing him of exaggerating his wealth.

The decision came seven months after the Republican returned to the White House. A panel of five judges in New York’s mid-level appellate division said the verdict, which stood to cost Trump more than $515m and rock his real estate empire, was “excessive”.