Judge Engoron found Donald Trump and his sons liable for fraud, revoking the Trump Organization's business certification.
This ruling came just before the trial involving the New York attorney general's office and Trump.
Engoron agreed with AG Letitia James, holding Trump and his sons accountable for repeated violations of New York state law.
The lawsuit focused on alleged false financial statements provided by the Trump family for nearly a decade.
Business certifications for Trump entities in the case were revoked, with a receiver appointed for the dissolution process.
The attorney general sought $250 million in damages and a five-year business activity ban for the Trumps.
A key accusation was Trump inflating property values, including his Trump Tower apartment.
Trump criticized the ruling, claiming political bias and vowing to appeal.
The case will proceed to trial without reasserting the falsehood of the financial statements.
The trial's start date remains uncertain due to ongoing legal proceedings, including an expected decision from a larger panel of appellate judges.