A U.S. Navy veteran’s defamation lawsuit against CNN could result in significant financial consequences for the network, as new revelations about its financial practices have emerged during the pretrial phase. Zachary Young is suing CNN over a 2021 segment that aired on “The Lead with Jake Tapper,” in which the network falsely portrayed him as an illegal profiteer exploiting desperate Afghans by charging exorbitant fees for evacuations following the U.S. withdrawal from Afghanistan. The lawsuit alleges defamation per se, defamation by implication, group libel, and trade libel.
The discovery process in the case has been contentious, with CNN accused of obstructing the release of crucial financial documents. Young’s legal team has repeatedly sought access to CNN’s financial records, which they argue are necessary for assessing potential punitive damages should they win the case. However, CNN has claimed that such documents do not exist, a position that has been challenged by Young’s attorneys.
In a recent motion, Young’s legal team revealed that during a deposition of CNN’s corporate representatives, it was disclosed that CNN’s parent company, Warner Bros. Discovery (WBD), operates the network’s finances in a way that obscures CNN’s financial details. The motion suggests that CNN does not maintain separate cash flow statements or balance sheets, as WBD consolidates all of its subsidiaries’ finances, including CNN, into a unified structure. This setup means that CNN has limited visibility into its own financials and is unable to provide the requested documents.
This revelation has led Young’s legal team to request that the court allow them to use WBD’s financial statements when assessing CNN’s ability to pay a potential punitive damages award. Young argues that since CNN cannot produce its own financial records, the jury should be allowed to consider the finances of its parent company in determining the network’s capacity to pay damages. This could have a significant impact on the potential scale of any damages awarded if Young prevails in the lawsuit.
The motion also requests that CNN be precluded from introducing evidence or arguments about its net worth in court. Given that CNN has claimed it does not have access to detailed financial records, Young argues that it would be improper for the network to present any evidence about its financial standing to the jury. By relying on the financial records of WBD, Young’s team seeks to ensure that the jury has the full picture of the network’s financial situation when considering the severity of any potential punitive damages.
In addition to the financial discovery disputes, Young has accused CNN of obstructing the discovery process in other ways, including preventing key individuals, such as Jake Tapper, from being questioned during depositions. These pretrial challenges have led to a series of legal victories for Young, including the court’s decision to allow punitive damages to be considered. This means that if Young can prove the defamation claims, CNN could face significant financial penalties.
The defamation at the heart of the lawsuit stems from a segment that aired on November 11, 2021, in which CNN’s correspondent Alex Marquardt reported on the chaotic situation in Afghanistan following the U.S. military’s withdrawal. The broadcast included a chyron with a photo of Young and statements suggesting that Afghan evacuees were being charged exorbitant fees to escape the Taliban. The chyron read: “AFGHANS TRYING TO FLEE TALIBAN FACE BLACK MARKETS, EXORBITANT FEES, NO GUARANTEE OF SAFETY OR SUCCESS,” and “AFGHANS AND ACTIVISTS REPORT DEMANDS OF $10K-$14K FOR ATTEMPTS TO GET FAMILY MEMBERS OUT OF COUNTRY.” Young contends that these statements falsely implied that he was involved in criminal activity, specifically in the black market, which has damaged his reputation.
CNN has defended its reporting, claiming that its research supported the story’s claims and that its journalists believed the information to be true at the time. However, the court has allowed Young to proceed with his case, ruling that there is sufficient evidence to suggest that CNN aired the segment with reckless disregard for the truth, which is a key component of defamation law.
As the case moves forward, Young’s legal team is pressing for further discovery sanctions against CNN for its failure to provide the necessary financial documents. The motion argues that CNN has not been forthcoming in complying with discovery requests, and its conduct has been obstructive and misleading. The court has already ruled that punitive damages are on the table, and if Young can prove the defamation claims, CNN could face a significant financial penalty.
This ongoing legal battle highlights the high stakes for both parties, with the potential for a costly outcome for CNN if Young’s claims are upheld. As the trial approaches, the focus will likely shift to the evidence surrounding the defamation allegations and the financial records that could play a pivotal role in determining the damages.
