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CNN and the man suing the network for defamation were unable to reach a financial settlement as mediation talks between the parties fell apart last week.
The plaintiff, Zachary Young, alleges that CNN smeared his security consulting company, Nemex Enterprises Inc., by implying it illegally profited when helping people flee Afghanistan during the Biden administration's military withdrawal from the country in 2021. Young, a U.S. Navy veteran, believes CNN "destroyed his reputation and business by branding him an illegal profiteer who exploited desperate Afghans" during a Nov. 11, 2021, segment on CNN’s "The Lead with Jake Tapper."
The Media Research Center’s NewsBusters exclusively obtained a filing that indicates the case will go to trial in January 2025.
"The Mediator files his report to the Court and advises that a mediation conference was held on September 11, 2024, at which the parties and attorneys of record appeared in person. The Court is further advised that the parties were unable to reach any agreement and an impasse was declared," the court document published by NewsBusters stated.
Jake Tapper is at the center of a defamation lawsuit against CNN. (CNN/Screenshot)
NewsBusters associate editor Nicholas Fondacaro wrote that the "amount offered to make the lawsuit go away was not disclosed," but "it would have needed to be fairly substantial to negate the allure of a possible $1 billion (possibly more) between compensatory, emotional, and punitive damages."
Fondacaro previously reported that Young’s lead counsel Vel Freedman has said there is "zero chance this case gets stopped before trial" because his client’s goal is to "take CNN to task."
CNN did not immediately respond to a request for comment.
Earlier this month, Judge William Henry paved the way for Young to issue a subpoena for CNN to hand over sensitive financial information that the cable network presented to its parent company, Warner Bros. Discovery. The decision was essentially made so that Young and his legal team could determine the cable network’s net worth.
The CNN segment at the center of the suit, which was shared on social media and also repackaged for CNN's website, began with Tapper informing viewers that CNN correspondent Alex Marquardt discovered "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."
Tapper tossed to Marquardt, who said "desperate Afghans are being exploited" and need to pay "exorbitant, often impossible amounts" to flee the country. Marquardt then singled out Young, putting a picture of his face on the screen and saying his company was asking for $75,000 to transport a vehicle of passengers to Pakistan for $14,500 per person to end up in the United Arab Emirates.
"Prices well beyond the reach of most Afghans," Marquardt told viewers.
CNN FACES DEFAMATION SUIT OVER AFGHANISTAN WITHDRAWAL STORY: 'EVIDENCE OF ACTUAL MALICE'
Plaintiff Zachary Young’s photo was aired by CNN during the segment in question. (CNN/Screenshot)
"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,’" Marquardt continued. "Young repeatedly declined to break down the cost or say if he’s making money."
No other people or companies were named other than Young.
"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,’" Marquardt told viewers.
Tapper responded, "Unfortunately, hmm," before thanking Marquardt for the report.
CNN’s Jake Tapper is caught up in a lawsuit over a 2021 story centered around the chaotic Afghanistan withdrawal. (Photo by Scott Kowalchyk/CBS via Getty Images)
Young alleged that CNN, using the terms "black market," "exploit" and "exorbitant," painted him as a bad actor preying on desperate people.
Earlier this year, judges with the First District Court of Appeal for the State of Florida ruled on June 12 that Young offered enough evidence that he was able to move forward with the defamation suit.
"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," the court document states. "Whether Young can ultimately prevail is not the issue before us."
The judges wrote, "Young proffered CNN messages and emails that showed internal concern about the completeness and veracity of the reporting — the story is ‘a mess,’ ‘incomplete,’ not ‘fleshed out for digital,’ ‘the story is 80% emotion, 20% obscured fact,’ and ‘full of holes like Swiss cheese,’" but the network aired it anyway.
"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," the judges wrote, adding that other internal communications show CNN staffers "had little regard" for Young and used profanities and disparaging language when privately discussing him.
"Marquardt referred to him as 'f---ing Young' and quipped, 'it’s your funeral, bucko,'" according to the court document.
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"On appeal, CNN argues it did not intend to harm; its language was either opinion or ambiguous; and the internal communications were journalistic bravado that reflected a sincere belief in the reporting," the judges wrote.
A civil trial is scheduled to begin on Jan. 6, 2025, in front of Judge Henry in the Circuit Court for Bay County, Florida.
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