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

The decision, which was not unanimous, 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”.

After finding that Trump engaged in fraud by flagrantly padding financial statements that went to lenders and insurers, judge Arthur Engoron ordered him last year to pay $355m in penalties. With interest, the sum has topped $515m.