According to recent reports, CNN has been hit with a major lawsuit that could shed light on confidential internal information. The legal measure regarding the disastrous 2021 withdrawal from Afghanistan seeks to obtain CNN’s total valuation and could reportedly expose highly guarded financial “secrets” about the network.
The lawsuit was filed by Zachary Young, the owner of Newmex Enterprises Inc., who claims that CNN reporters defamed his business after publishing a story on his company’s involvement in the withdrawal from Afghanistan that went horribly wrong. According to the suit, CNN insinuated that Young’s company had illegally profited while helping evacuate Americans and Afghans amid the chaos. Young has demanded that CNN provide transparency into its finances so a fair penalty can be determined.
The initial hearing was covered by NewsBusters associate editor Nicholas Fondacaro, who claimed, “Essentially, this will act as a way to double check to see if CNN was being honest with the financial documents they were turning over as part of discovery; comparing what they turned over to Young’s legal team vs what they told corporate.”
Puck reporter Eriq Gardner wrote that the judge’s decision “sent a jolt through CNN’s executives offices.” Gardner added, “Young has won a green light to seek punitive damages. Accordingly, Young’s attorneys will soon be receiving documents to assess CNN’s net worth, so they can argue before a jury just how big a penalty Young should receive. The judge has also ordered a deposition for Jake Tapper, who will likely have to disclose his salary and contract negotiations.”
The network’s controversy stems from a segment in which host Jake Tapper claimed that CNN correspondent Alex Marquardt had found that “Afghans trying to get out of the country face a black market full of promises, demands of exorbitant fees, and no guarantee of safety or success.”
Marquardt added, “We got Young’s number and called, but he didn’t pick up. In a text message, he told CNN that ‘Afghans trying to leave are expected to have sponsors pay for them. If someone reached out, we need to understand if they have a sponsor behind them to be able to pay evacuation costs which are highly volatile and based on environmental realities. Young repeatedly declined to break down the cost or say if he’s making money.”
“In another message, that person offering those evacuations, Zachary Young, he wrote, ‘Availability is extremely limited and demand is high’… he goes on to say, ‘That’s how economics works, unfortunately,’” the correspondent told viewers. Tapper responded, “Unfortunately, hmm,” before thanking Marquardt for the report.
Young argues that CNN using terms such as “black market,” “exploit” and “exorbitant,” protray him as a bad actor taking advantage of desperate civillians. “Young sufficiently proffered evidence of actual malice, express malice, and a level of conduct outrageous enough to open the door for him to seek punitive damages,” a court document claims.
“Whether Young can ultimately prevail is not the issue before us.” Judges further wrote, “Young also proffered a message exchange he had with Marquardt just hours before publication where he advised there were factual inaccuracies in the reporting. CNN published anyway.”
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