CNN is facing a defamation lawsuit filed by Zachary Young, a security consultant, over a 2021 news report about the chaotic withdrawal of U.S. forces from Afghanistan.

The lawsuit, centered on claims aired during a segment of The Lead with Jake Tapper, could expose sensitive financial information from CNN as part of the discovery process, as Fox News reports.

The trial, scheduled for January 2025, may force CNN to reveal its net worth and other key information as Young seeks punitive damages.

Young, who owns the security consulting firm Nemex Enterprises Inc., alleges that a story broadcast by CNN falsely portrayed his company as exploiting Afghans during the military evacuation. The November 2021 segment, presented by CNN correspondent Alex Marquardt, accused Young of charging high fees for evacuation services, which the report claimed were out of reach for most Afghans.

Judge Allows Subpoena of CNN's Financial Records

In a significant development, a Bay County, Florida, judge ruled that Young’s legal team could subpoena CNN for financial records as part of the ongoing lawsuit. The ruling, handed down last week by Judge William Henry, specifically allows Young to access documents provided by CNN to its parent company, Warner Bros. Discovery, which will be used to argue for punitive damages.

The ruling also opens the door for a deeper inquiry into CNN's finances, with Judge Henry allowing Young’s attorneys to request details of CNN’s net worth. This is critical for determining the size of potential damages if Young prevails in the case.

Jake Tapper Ordered to Sit for Deposition

Judge Henry also ordered CNN anchor Jake Tapper to give a deposition, including details about his salary and contract negotiations. This order comes amid broader personnel changes at CNN, which laid off approximately 100 staff members in July as part of corporate restructuring.

CNN has expressed concern over the judge’s decision, with lawyer Charles Tobin stating that the ruling disrupts the network's plans. CNN is now facing an October 11 deadline to comply with the subpoena and provide the requested financial documents.

Allegations of Illegal Profiteering and Malice

Young’s lawsuit focuses on claims made by CNN during the Nov. 11, 2021, episode of The Lead, in which Marquardt reported that desperate Afghans were being "exploited" by private firms during the evacuation. Marquardt specifically mentioned Young’s company, alleging that he charged $14,500 per person for transportation to the United Arab Emirates, a sum far beyond the means of most evacuees.

According to Young, these high fees were necessary due to logistical challenges and the need for sponsors to cover costs. Young asserts that the story damaged his company's reputation and falsely accused him of profiteering during a humanitarian crisis.

Internal CNN Communications Question Story's Accuracy

Evidence presented by Young in court filings includes internal CNN communications that cast doubt on the accuracy of the report. These messages revealed concerns among CNN staff that the story was incomplete and not fully supported by facts. One internal communication described the report as "80% emotion, 20% obscured fact," while another message referred to it as "full of holes like Swiss cheese."

Despite these concerns, CNN proceeded with the broadcast. Young’s legal team has argued that these internal messages demonstrate "actual malice" and support his claim for punitive damages.

Punitive Damages Could Lead to Financial Disclosure

The First District Court of Appeal for the State of Florida ruled in June 2024 that Young had provided sufficient evidence of "actual malice" to pursue punitive damages. This ruling allows Young to argue that CNN’s actions were outrageous enough to warrant a financial penalty. As a result, CNN could be required to disclose sensitive financial information, including net worth documents, to help determine the size of any potential damages.

Eriq Gardner, a reporter for Puck, noted that the judge’s decision "sent a jolt through CNN’s executive offices" and that the ruling could have significant implications for the network's financial transparency. Gardner also pointed out that Young’s attorneys will soon receive documents that could help them assess CNN’s financial standing.

CNN’s Defense and Future Implications

CNN has maintained that it did not act with malice and that the statements made in the report were either opinions or based on ambiguous information. The network's legal team has argued that the internal communications reflect "journalistic confidence" rather than any intent to harm Young or his business.

As the case progresses, the deposition of Jake Tapper and the release of CNN’s financial records will likely play a key role in determining the outcome of the lawsuit. CNN's ability to defend itself against the allegations and the potential for punitive damages will be closely watched.

Conclusion: A High-Stakes Defamation Battle

With a trial set for January 2025, CNN is facing a significant legal battle that could expose its financial secrets. Zachary Young’s defamation lawsuit, stemming from a report on Afghanistan’s military evacuation, has escalated into a case involving potential punitive damages and financial disclosures.

As the case unfolds, internal communications, depositions, and court rulings will shape the outcome, with broader implications for the network and its financial standing.