A few days ago, in the midst of an otherwise low-profile defamation case, a Florida judge sent a jolt through CNN’s executives offices when he ordered the news network to cough up a mountain of sensitive financial records—balance sheets, credit lines, internal valuations for a potential sale, you name it.
At a hearing to discuss the matter, Charles Tobin, CNN’s lawyer, visibly bristled at the ruling. “This is pretty expansive,” he grimaced, processing an October 11 deadline to comply with Panama City Judge William Scott Henry’s sweeping directive. “This upends our plans internally,” he lamented.
Why the deep dive into CNN’s finances?
According to Puck, it goes back to a November 11, 2021, segment on The Lead With Jake Tapper, when reporter Alex Marquardt detailed how, following President Joe Biden’s withdrawal from Afghanistan and the collapse of the government, panicked locals turned to private contractors to help them flee the country.
One such contractor was Zachary Young, a Navy veteran whose firm was charging people hefty fees—sometimes tens of thousands of dollars—to escape the Taliban. Asked about these prices, Young explained that availability was limited and demand was high.
“That’s how economics works, unfortunately,” he said, reportedly.
The CNN interview with Young segued into a segment on “black markets,” a narrative jump that prompted Young to sue CNN, alleging that this framing portrayed him as exploiting Afghanis during a crisis. That’s subjective, of course, but discovery in the case has been less than flattering for CNN.
Internal communications reveal that CNN staffers referred to Young as a “shitbag,” and that they hoped to “nail this Zachary Young mfucker.”
Meanwhile, CNN’s so-called Triad system, consisting of fact-checkers and legal review, was pumping out feedback that the TV segment was “80 percent emotion, 20 percent obscured fact” and “full of holes like Swiss cheese.”
CNN’s attempts to dismiss the case, by arguing that the report was filled with non-actionable ambiguity and opinion, have fallen flat.
The network is staring down a January trial where, crucially, 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. CNN has lost one bid to appeal, meaning the network may appear in court before Judge Henry, a Ron DeSantis appointee.
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