CNN is facing a defamation lawsuit over a 2021 story about the chaotic Afghanistan withdrawal, and a recent ruling could expose financial secrets as the court seeks to determine the cable network's net worth.
The plaintiff, Zachary Young, claims CNN defamed his security consulting firm, Nemex Enterprises, by suggesting that he illegally profited from helping people flee Afghanistan when the Biden administration withdrew troops from the country in 2021. The civil trial is scheduled to begin on Jan. 6, 2025, before Judge William Henry in Florida's Bay County Circuit Court.
Last week, Henry paved the way for Young to issue a subpoena requiring CNN to turn over reams of confidential financial information the cable network has given to its parent company, Warner Bros. Discovery.
“Essentially, this will serve as a way to double-check whether the financial documents CNN submitted as part of its investigation were honest — comparing what they provided to Young's legal team with what they communicated to headquarters,” NewsBusters deputy editor Nicholas Fondacaro wrote. Coverage of the hearing.
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Jake Tapper was the host of the show at the center of the defamation lawsuit. (CNN/Screenshot)
PAC reporter Eric Gardner wrote that the judge's decision “sent shock waves to CNN executives.”
“Mr. Young was granted leave to seek punitive damages,” Gardner wrote.
“So Young's lawyers will soon receive documents assessing CNN's net worth and will argue in front of a jury how much of a penalty Young should receive,” he continued. “The judge has also ordered a deposition of Jake Tapper, who will likely have to disclose information about his salary and contract negotiations.”
Tapper's salary will be of particular interest to former CNN employees who were let go in recent cost-cutting cuts after the network announced in July that it would lay off about 100 staff members.
Gardner also reported that CNN's lawyer, Charles Tobin, was “visibly upset by the ruling” and told the judge that the Oct. 11 deadline “undermines” his plans.
Young, a U.S. Navy veteran, believes CNN has “destroyed his reputation and his business by stigmatizing him as an illegal profiteer exploiting desperate Afghans,” in a Nov. 11, 2021 segment on CNN's “The Lead with Jake Tapper,” which was shared on social media and also repackaged on CNN's website.
Tapper began the show by telling viewers that CNN correspondent Alex Marquard found that “Afghans trying to flee the country face a black market full of promises and exorbitant fees with no guarantee of safety or success.”
When Tapper confronted Malquart about the matter, he said “desperate Afghans are being exploited” and that they must pay “exorbitant, often impossible, amounts of money” to leave the country. Malquart then called out Young by name, projecting his face onto a screen, and said his company was demanding $75,000 to transport vehicles full of passengers to Pakistan and then to the United Arab Emirates for $14,500 each.
“It's a price that's out of reach for most Afghans,” Malquart told viewers.
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Plaintiff Zachary Young's photograph was aired by CNN during the program at issue. (CNN/Screenshot)
“We obtained Young's phone number and called but he didn't answer. He told CNN in a text message, 'Anyone trying to get out of Afghanistan is expected to have a sponsor pay for them. If anyone contacts us we need to know if they have a sponsor to help pay for the evacuation which is based on the reality of a very precarious and volatile environment,'” Marquardt continued. “Young repeatedly declined to provide details on costs or whether he was making any money.”
No other people or companies were named other than Young.
“In another message, evacuee Zachary Young wrote that 'space is very limited and demand is high,'” he added. “Unfortunately, that's just how the economy works,” Marquardt told viewers.
“Unfortunately, yeah,” Tapper replied, before thanking Marquardt for the report.
Young claimed CNN used words like “black market,” “exploitation” and “exorbitant prices” to portray him as a villain who preys on desperate people.
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CNN's Jake Tapper is embroiled in a lawsuit over his 2021 reporting, which centered on the chaotic Afghanistan withdrawal. (Getty Images)
CNN did not immediately respond to a request for comment.
It will be interesting to see if CNN's chief media analyst, Brian Stelter, who only recently returned to the network after being fired by previous management, covers this story: his media newsletter didn't come back up until Monday, and he didn't post an article about the defamation lawsuit against X while he was away from the network.
Earlier this year, a judge from Florida's First Court of Appeals ruled on June 12 that Young had presented enough evidence to proceed with a defamation lawsuit against CNN seeking punitive damages.
“Mr. Young has presented sufficient evidence of actual malice, manifest malice, and a level of egregious conduct sufficient to warrant punitive damages,” the court documents state. “Whether Mr. Young will ultimately prevail is not the issue before us.”
The jury wrote that “Young provided CNN messages and emails raising internal concerns about the integrity and veracity of the reporting, calling the story a 'mess,' 'incomplete,' 'not fleshed out for digital,' '80% emotion and 20% hidden facts,' and 'as full of holes as Swiss cheese,'” but the network still aired the story.
“Young also presented message exchanges with Marquardt hours before the article was published in which he told them the story contained factual errors. CNN published it anyway,” the judges wrote, adding that other internal communications showed CNN staff had “little respect” for Young and used foul language and derogatory terms when speaking about him privately.
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“Marquardt called him a 'son of a bitch' and joked that 'this is your funeral,'” according to court documents.
“On appeal, CNN argues that it had no intent to harm, that its words were opinion or ambiguous, and that its internal communications were journalistic bravado that reflected its good faith reporting beliefs,” the justices wrote.
