Kevin O’Leary, a notable investor from “Shark Tank,” has launched a scathing critique of New York, categorically stating his intention to halt all investment activities within the state. This declaration follows closely on the heels of a New York court ruling against former President Donald Trump, involving a staggering $355 million verdict. O’Leary’s dissatisfaction with the legal outcome echoes a broader sentiment of disbelief and concern among investors.
The Verdict That Shook Investors
Last week, a significant legal decision was rendered against Donald Trump, his enterprises, and key executives, including his sons. The judgment, handed down by Judge Arthur Engoron, imposed a hefty sum of over $355 million on Trump for manipulating his net worth to gain tax and insurance advantages. Additionally, it barred him from engaging in New York business activities for three years. This move has left many, including O’Leary, in a state of shock, questioning the rationale behind such a decision.
Unpacking the Legal Drama
The lawsuit led by New York Attorney General Letitia James against Trump, his organization, and his top executives concluded a long-standing legal battle. Spanning over a decade of alleged fraud, this case culminated in a civil fraud trial that has now resulted in a monumental financial penalty against Trump and his business operations. The implications of this outcome have rippled through the investor community, with O’Leary vocalizing his astonishment and frustration.
No Longer an Investment Haven
O’Leary, steering O’Leary Ventures, has been blunt about his views on New York, labeling it as a state already struggling with policy issues, high taxation, and uncompetitive regulatory frameworks. His resolve to divert investments away from New York is a testament to the growing sentiment among investors, who are now looking towards more business-friendly states like Texas and Florida for opportunities.
The Exodus to Friendlier States
In light of recent developments, O’Leary predicts a significant shift in business dynamics, with existing companies and new startups opting for states that offer a more conducive environment for growth. This trend, according to him, is a clear indicator of the competitive divide between states, further exacerbated by the pandemic’s aftermath.
A Governor’s Assurance Meets Skepticism
Responding to New York Governor Kathy Hochul’s attempts to reassure business owners, O’Leary expresses deep skepticism. He questions the basis of the legal decision and its implications for the investment landscape in New York. His concerns highlight a broader anxiety among investors, who see the ruling as a reflection of deeper systemic issues within the state’s legal and regulatory framework.
Echoes of Support from Trump
Donald Trump, taking to his social media platform Truth Social, lauded O’Leary’s outspoken stance. Trump’s endorsement of O’Leary’s perspective underscores a shared viewpoint among business leaders regarding the future of business and investment in New York, following what many see as a controversial judicial decision.
