New York, NY – Former President Donald Trump has obtained a $91.6 million bond to cover the defamation lawsuit judgment he owes to writer E. Jean Carroll while he appeals the verdict, according to his lawyer. The bond was secured from Federal Insurance Co., a subsidiary of insurance giant Chubb, and will cover the $83.3 million judgment, plus interest. This move comes as Trump faces financial pressure due to multiple legal challenges.
Attorney Alina Habba filed papers with a New York judge, providing evidence of the bond and Trump’s appeal of the verdict. Posting the bond was necessary to delay payment until the 2nd U.S. Circuit Court of Appeals can review Trump’s legal challenge. This comes after Judge Lewis A. Kaplan rejected a request to extend the deadline for posting the bond.
In addition to the Carroll case, Trump also faces a larger judgment in another lawsuit where he was found liable for providing false information about his wealth to banks. A New York judge recently refused to halt collection of the $454 million civil fraud penalty, giving Trump until March 25 to pay or purchase a bond to cover the full amount. Meanwhile, interest on the judgment continues to accumulate.
The defamation lawsuit stems from a civil jury’s finding last year that Trump sexually abused Carroll in 1996. Trump denies the allegations, claiming he did not know Carroll and that the incident never took place. The jury awarded Carroll $5 million in damages for the alleged assault and the harm caused to her reputation when Trump publicly dismissed her claims.
In January, a second trial was held to determine further damages for derogatory comments Trump made about Carroll in 2019 while he was president. The jury was instructed to accept the earlier findings of sexual abuse. Trump did not attend the May trial but briefly testified and sat with his defense lawyers during the January trial.
Amid these legal battles, Trump’s finances are under strain as he works to cover the judgments he owes. His lawyers have requested a stay on appeal for the civil fraud penalty, expressing concerns that he may need to sell properties to pay the penalty. The bond obtained for the defamation lawsuit will provide temporary relief as Trump awaits the outcome of his appeals.
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