After a Florida jury found that CNN defamed a U.S. Navy veteran who helped rescue endangered Afghans, the network reached a settlement on Friday to avoid a punishing order that it pay punitive damages.
The unusual ruling against a media outlet following a jury defamation trial was a blow to both struggling CNN and news outlets in general on the eve of a new term as president by Donald Trump, who has whipped up anger against journalists among his supporters.
The jury in Panama City, Florida, ruled in favor of Zachary Young following more than eight hours of deliberation and a trial of less than two weeks. Young blamed CNN for destroying his business through a 2021 story on Jake Tapper's broadcast about a “black market” of extracting desperate Afghans following the Taliban takeover.
“I know Zach feels heard in a way that he hasn’t felt for over three years,” said Kyle Roche, one of his lawyers, after the verdict.
The jury awarded Young $5 million in compensatory damages. A second phase of the trial, to award punitive damages, was underway Friday afternoon before Circuit Court Judge William S. Henry interrupted proceedings to announce a settlement. Terms were not disclosed.
“We remain proud of our journalists and are 100% committed to strong, fearless and fair-minded reporting at CNN, though we will of course take what useful lessons we can from this case,” CNN said in a statement.
Young's business helped smuggle people out of Afghanistan, but he said he worked exclusively with deep-pocketed outside sponsors like Bloomberg and Audible. CNN showed its face in a story that primarily raised questions about contractors who were charging Afghans themselves fees as much as $10,000 to get out.
He testified that the term “black market” implied he was involved in something illegal. “It's devastating if you're labeled a criminal all over the world,” he testified during the trial.
CNN contended its reporting was fair and accurate, although the network did issue a statement a few months after the story aired apologizing for using the phrase “black market.”
At a trial located in a conservative part of the country, Young's lawyers urged jurors to send a message to the media. Questions submitted by jurors during the trial telegraphed some hostility, with one wondering whether CNN had treated the plaintiff as guilty until proven innocent.
Private messages also became part of the trial, with plaintiffs showing internal messages where CNN's reporter, Alex Marquardt, said some profane and unflattering things about Young. Marquardt testified in the trial that his story, which aired on Nov. 11, 2021, and was followed up with print pieces on CNN's website, “was not a hit piece.”
Defamation trials are actually rare in the United States, in part because strong constitutional protections for the press make proving libel difficult. News outlets with qualms about their cases often seek settlements before taking the risk of bringing it before a judge or jury.
The jurors didn't appear upset about the idea of missing the extra step. As he announced the settlement, Henry read an earlier note from jurors that said, “Did you forget about us? It's 5 o'clock somewhere,” drawing laughter.
Rather than defend statements that George Stephanopoulos made about Trump last spring, ABC News last month agreed to make the former president's libel lawsuit go away by paying him $15 million toward his presidential library. In the end, ABC parent Walt Disney Co. concluded an ongoing fight against Trump wasn't worth it, win or lose.
In another case, Fox News agreed to pay Dominion Voting Systems $787 million on the day the trial was due to start in 2023 to settle the company's claims of inaccurate reporting in the wake of the 2020 presidential election.
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Associated Press correspondent Curt Anderson in St. Petersburg, Florida, contributed to this report. David Bauder writes about media for the AP. Follow him at http://x.com/dbauder and https://bsky.app/profile/dbauder.bsky.social
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