Navy veteran says CNN made shocking financial admissions

A court exhibit shows a CNN chyron from a segment that aired on November 11, 2021, along with an image of Zachary Young (via court documents).

A U.S. Marine veteran’s defamation lawsuit against CNN could prove far more costly for the cable news network than previously thought, according to a blockbuster filing in the case on Friday.

In the preliminary hearing there were arguments about the discovery.

As Zachary Young and CNN prepare to make their respective arguments to the jury, the plaintiff is asking the judge presiding over the matter to issue an order on a surprise disclosure about the network’s cash flows and balance sheets. Such an order would likely have a significant impact on potential damages if Young wins his case.

Young is suing CNN in Bay County, Florida, over a 2021 segment that aired on “The Lead with Jake Tapper.” In the lawsuit, Young claims the network falsely portrayed him as an “illegal profiteer” who was exploiting “desperate Afghans” with “exorbitant” extraction fees amid the fallout from President Joe Biden’s chaotic withdrawal from Afghanistan.

So far, two judges in two states – Florida and Delaware – have ordered CNN and parent company Warner Bros. Discovery to turn over a wide range of financial information. These verdicts represent a significant loss for the network, as punitive damages could potentially make a Young victory quite costly for the defendants.

In a 25-page lawsuit seeking punitive damages, Young says testimony from CNN executives revealed that complex financial information simply doesn’t exist for the mainstream media.

Recall that Young and his lawyers have been trying for some time to obtain certain financial documents that they claim are relevant to the case, but complain that CNN has not responded promptly with such disclosure .

Now, the plaintiff says, he knows why.

“During the financial investigation, CNN repeatedly claimed that the company had no cash flow statements or balance sheets, despite recently admitting that its net assets were more than (redacted),” the filing says. “These representations made no sense to the plaintiff until the testimony of CNN’s CFO, whose testimony showed that this was because CNN’s parent company, Warner Brothers Discovery Inc., is a conglomerate that operates CNN and its other operating segments like one “Operates a type of subsidiary slush fund,” ensuring that CNN has virtually no control over or insight into the revenue generated by its business.”

The multinational mass media conglomerate has long maintained that the documents requested by Young were not records it kept.

More Law&Crime coverage: ‘Issue the subpoena immediately’: Judge orders CNN’s parent company to turn over extensive financial documents in a Navy veteran’s defamation case against the network

“If it doesn’t exist, we can’t be forced to produce something,” Warner Bros. Discovery representative Jennifer Ying told the Delaware judge, according to a Fox News court report.

“We have told them twice now that such information does not exist,” Ying reportedly continued. “They refused to accept this. We can’t create information that simply doesn’t exist.”

Under oath in the Sunshine State, CNN has now apparently gone on record saying the same thing – with an explanation set out in the heavily redacted filing in limine.

Young, for his part, is now willing to accept this situation – with a catch that could result in a hefty fine for the company.

From the application in detail:

When asked to assess CNN’s ability to pay punitive damages, CNN’s corporate representative stated (redacted). Instead, CNN’s corporate representative and CFO directed plaintiffs to contact (redacted). In other words, he stated that CNN’s ability to pay was limited only by WBD’s ability to pay.

Fine. The court should issue a motion that reflects the views expressed by CNN. Specifically, the Court should order (redacted) that the financial reports of CNN’s parent company – Warner Bros. Discovery (“WBD”) – be used to assess CNN’s ability to pay punitive damages. At a minimum, the court should allow the jury to consider WBD’s financial reports when assessing CNN’s solvency. Additionally, the court should prevent CNN from providing evidence and arguments regarding his net worth because it has been (redacted).

Essentially, Young wants the court to stop CNN from arguing about its own finances to the jury if it loses the defamation case.

This would be legally illegal, according to Young, because CNN claims they don’t know enough about their own finances to disclose them to the plaintiff. Your potential liability should therefore be based on the actual financial records maintained by Warner Bros. Discovery.

Relying on the parent company, Young says, only makes sense under the circumstances that CNN confirmed during the deposition.

“WBD appears to manage all aspects of CNN’s cash flow,” the filing states at one point. “It collects virtually all of CNN’s cash directly and immediately commingles it with the cash generated by WBD’s other affiliate segments.”

More Law&Crime coverage: “CNN Lawyer Obstructed”: Navy Veteran Sues Cable News Network for Defamation, Says Lawyer ‘Dissuaded Jake Tapper from Testifying’ in Answer to ‘More Than Thirty Questions’

Young has repeatedly accused CNN of bad behavior throughout the ongoing trial – even as both sides prepare for trial.

In return, the veteran has achieved a number of pre-test victories.

On Dec. 6, after ruling on a variety of motions for summary judgment and motions for a preliminary injunction, the court ruled that Young could accept his allegations and argue his case against television’s first 24-hour cable news network before a civil jury . In another clear victory for Young – and a significant loss for the network – the court ruled that punitive damages were on the table. That means if the veteran proves the basic allegations in the lawsuit, CNN could potentially have to pay millions of dollars.

The case is being overseen by 14th Judicial District Judge William Henry.

Young, a U.S. citizen who lives in Austria and is president of Florida-based Nemex Enterprises, sued CNN for libel per se, implied libel, class libel and commercial libel, claiming its efforts to save lives in Afghanistan were for security reasons Advisers were distorted by “lies published for sensationalism.”

The segment in question, which aired on November 11, 2021 and featured correspondent Alex Marquardt’s reporting on Jake Tapper’s show, featured a photo of Young over Chyrons with the caption: “AFGHANS TRYING TO ESCAPE TALIBAN FACE BLACKMARKETS, EXCESSIVE FEES, NO GUARANTEE OF SAFETY OR SUCCESS” and “AFGHANS AND ACTIVISTS REPORT REQUIREMENTS OF $10,000 TO $14,000 IN ATTEMPT TO REMOVE FAMILIES FROM THE COUNTRY.”

The crux of the lawsuit is the argument that the term “black market” implies that Young was involved in something criminal, nefarious, or otherwise inappropriate and defamatory.

The defendant argued that “all the information CNN uncovered in the course of its investigation supported the core of what it reported” and that the network’s “journalists actually believed in the truth of what was reported.”

In his recent ruling, Henry said: “The evidence on file could support the conclusion that the defendant broadcast and published the documents knowing that the core content was false, or that he recklessly disregarded whether the core content was false or not.” not.”

In Young’s latest filing, he alternatively argues for disclosure sanctions over the network’s decision not to provide financial documents – which in turn would be largely relevant to the award of punitive damages if he proves he was defamed.

“Granting Young’s motion provisionally would avoid the need to punish CNN for its blatant discovery abuses,” the motion continues. “CNN has repeatedly promised, including in deposition, that it would provide sufficient documents to identify CNN’s assets and liabilities and prepare its corporate representative to testify about CNN’s net worth. However, at the company representative’s deposition, the plaintiffs learned that CNN never intended to produce documents evidencing assets and liabilities (because they do not exist) and were confronted with a witness who claimed so (redacted), including the ( redacted), affidavit question answer reported by CNN.”

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Navy veteran says CNN made shocking financial admissions

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