Explained: What you need to know about the CNN defamation case and verdict
On January 17, CNN announced that it had settled a defamation case with a Navy veteran and security consultant Zachary Young. The trial took place in a Florida courthouse during the first two weeks of January and ended with a jury finding the network liable and awarding Young $5 million in damages.
CNN joins Fox News, NewsmaxAnd ABC News by choosing to settle a high-profile defamation case. Unlike these other networks, CNN allowed the lawsuit to continue before ultimately reaching a settlement.
Here are the details of the trial closely followed by TVNewser.
Why did Young sue CNN?
In August 2021, the US military withdrew from Afghanistan after nearly two decades in the country. Amid the chaos of the withdrawal, Afghan residents who had aided U.S. troops were looking for a way to leave the country, fearing prosecution by the Taliban.
On November 11, 2021, the show The Lead with Jake Tapper presented a report of Alex Marquardt which revealed how some US contractors were charging Afghan nationals fees of up to $10,000 for safe passage to other countries. Young’s face was shown in the report above a lower third that detailed the exorbitant costs of the “black market” that existed in this country during this period. He was the only private contractor named in the CNN article.
But Young said his company has never accepted payments from individuals in Afghanistan. Instead, he worked with sponsorship from high-profile corporate clients including Audible and Bloomberg. The online version of the CNN article notably did not link Young indirectly or directly to the contraband black market.
After the story aired, Young and his legal team threatened CNN with legal action if the network has not offered a correction. Although CNN issued an on-air apology to Young in March 2022, this was deemed insufficient and a lawsuit was filed in September.
What happened during the trial?
The trial began Jan. 6 in a Panama City, Fla., courtroom with Judge William Henri of the 14th Judicial Circuit.
In his opening statement, CNN’s lead attorney, David Axelrod—no relation to the on-air analyst– described the network’s reporting as “rigorous, fair and precise.”
But Kyle Rocheone of Young’s lawyers, responded in his opening statement by saying: “Overnight, [Young] went from patriot to criminal, and his career as a private intelligence and security consultant has not recovered. CNN’s reckless journalism stole Zach’s revenue and reputation.
Vel FreedmanYoung’s other lawyer, added that CNN deliberately caused damage to his client, costing him millions of dollars and causing him irreparable personal harm.
Marquardt, Tapper and top CNN executives took the stand during the two-week trial, providing a window into its rarely seen process of gathering information through internal emails and messaging systems. In one of Marquardt’s messages presented during the trial, the reporter wrote that he was “going to nail this Zachary Young mf-er.”
When Young spoke, he said he became discouraged after CNN’s story aired. “I became an outcast, and that’s how I felt,” he remarked at one point. “And to a large extent, I still do.”
In his final argumentAxelrod advised jurors to use common sense when considering the case. “[There is] simply no evidence before you to conclude that CNN defamed Mr. Young,” he argued.
Freedman, meanwhile, used his closing argument to insinuate that CNN was more interested in theater than the truth. He urged the jury to “fix” what is wrong with today’s news, saying: “You have the ability to send the message. Please do it.
What was the verdict?
Jury ultimately found CNN liableYoung to receive $5 million for pain and suffering, lost business opportunities and additional punitive damages. But CNN reached a settlement with him for an undisclosed amount shortly after the verdict was announced.
“We remain proud of our journalists and are 100% committed to providing strong, courageous and fair reporting at CNN,” a CNN spokesperson told TVNewser after the settlement. “Although, of course, we will learn whatever useful lessons we can from this matter. »
What happens next?
CNN is not the only network with a defamation lawsuit on the agenda in 2025. CBS News is mulls settlement for own defamation case brought by the president Donald Trump about the network’s interview with his Democratic rival in the election, the former vice president Kamala Harris. Paramount Global, the parent company of CBS News, is currently seeking regulatory approval for its pending merger with Skydance Media.
And the second Trump administration could result in more defamation lawsuits against the media, although the president has indicated he is still willing to work with the press. “I’m not looking for revenge or grandstanding or destruction of people who have treated me very unfairly, beyond belief,” Trump said in an interview on Fox News. on November 24.
“I’m always looking to give second or even third chances,” Trump added. “But I never wanted to give a fourth chance. This is where I hold my ground. »
The press is not sure how Trump intends to maintain this line.
An additional revelation from the just-concluded trial is the state of CNN’s balance sheet. The network’s net income was cut in half from $600 million to $300 million between 2021 and 2022, an eyebrow-raising decline that may be linked to the closures of CNN+ and HLN. CNN’s profits rebound to over $400 million in 2023.
CNN net profit:
2021: 600 million
2022: 300 million
2023: 400 million
These are not numbers we usually get…
– Jérémy Barr (@jeremymbarr) January 17, 2025
CNN’s parent company, Warner Bros. Discovery, recently announced a corporate restructuring which created separate operating divisions for its cable and streaming businesses. This follows NBCUniversal’s separation of its cable news networks – MSNBC and CNBC –into a separate SpinCo entity.
CNN’s future is tied to WBD’s plans for its cable networks and its decision to spin them off or sell them. The point of sale is already in progress of develop your digital activity under the president Marc Thompson and seeking new revenue streams as consumers continue to move away from traditional cable subscriptions.
