New York AG’s $250M fraud lawsuit against Ivanka Trump thrown out by state appeals court

New York Attorney General Letitia James’ $250 million lawsuit alleging Ivanka Trump engaged in business fraud while at the Trump Organization has been dismissed by a state appeals court.

The five-judge appellate panelruled Tuesday that James’ claims against the former first daughter fell outside the state’s statute of limitations, while more recent allegations of wrongdoing occurred after Ivanka had stepped back from the family business to work with her father in the White House. 

“The allegations against defendant Ivanka Trump do not support any claims that accrued after February 6, 2016,” the ruling said. “Thus, all claims against her should have been dismissed as untimely.”

The court also ordered that James may not sue over claims that arose before July 13, 2014, or Feb. 6, 2016, depending on the defendant.

James sued the Trump Organization, former President Donald Trump and his three eldest children –  Ivanka, Donald Jr. and Eric – in September 2022, alleging they misled banks, insurance companies and others about the value of the 77-year-old family patriarch’s assets, including golf courses and Mar-a-Lago.

As part of her lawsuit, the attorney general is seeking $250 million in damages from the Trump family and a ban on the clan doing business in New York. 

The lawsuit will proceed against the other defendants, however, the court left open the possibility of the case being further narrowed. 

“The Appellate Division decision today represents the first step towards ending a case that should have never been filed,” a Trump spokesperson told Fox News Digital. “The correct application of the law will now limit appropriately the previously unlimited reach of the Attorney General.” 

A spokesperson for James’ office said Tuesday that there is sill “a mountain of evidence that shows Mr. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for significant economic gain.” 

“Those facts haven’t changed. This decision allows us to hold him accountable for that fraud, and we intend to do so,” the spokesperson added. 

The former president has vehemently denied any wrongdoing, alleging that the case filed by James, a Democrat, is politically motivated and accusing her of being a “racist.” 

The case is expected to go to trial on Oct. 2.