Disney’s $16 Million Settlement in Trump’s Defamation Case Sparks Unrest Among ABC News Staff

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Disney’s $16 million settlement with Donald Trump in a defamation case against ABC News has sparked controversy and internal unrest at the network.

At a Glance

  • Disney settled a lawsuit with Trump for $16 million, including $15 million for his presidential library
  • ABC News staff are reportedly dissatisfied with the settlement decision
  • The case has ignited debate about legal protections for news organizations in defamation suits
  • Stephanopoulos signed a new multi-year contract with ABC News despite the controversy

Settlement Details and Backlash

In a move that has sent shockwaves through the media industry, Disney has agreed to a $16 million settlement with Donald Trump to resolve a defamation lawsuit against ABC News. The settlement includes $15 million directed towards Trump’s presidential library and $1 million for legal costs.

The decision to settle has been met with significant criticism both inside and outside the network. Many ABC News journalists are reportedly disappointed with the decision, fearing it may signal challenges in covering the incoming Trump administration. The settlement is being viewed as a significant victory for Trump and his supporters, potentially encouraging similar lawsuits against media outlets in the future.

Legal Implications and Media Freedom Concerns

The settlement has raised concerns among media law experts about the potential precedent it sets for future defamation cases involving public figures. Some believe that ABC News could have won the case but chose to settle to avoid the risk of larger jury-set damages and negative publicity. The decision to settle rather than fight the lawsuit in court has sparked discussions about the fragility of legal safeguards for news organizations in high-stakes defamation cases.

The case has also reignited concerns about the potential for the current Supreme Court to overturn New York Times v. Sullivan, a landmark decision that protects media companies in defamation cases involving public officials. This settlement may embolden Trump to file more lawsuits challenging the First Amendment, as he has already initiated legal actions against other media outlets such as CBS and the Des Moines Register.

Internal Discord at ABC News

The settlement decision has caused significant internal problems at ABC News. Many staff members are reportedly unhappy with the network’s handling of the situation, particularly given that George Stephanopoulos has signed a new multi-year contract despite the controversy. This has led to questions about accountability and the network’s commitment to journalistic integrity.

“It’s disgraceful that George Stephanopoulos continues to earn an eight-figure salary from ABC when he makes false and defamatory statements, ratings at ‘GMA’ are rock bottom, and he is so radioactive he couldn’t even moderate ABC’s presidential debate. Bob Iger needs to put an end to this self-debasing cronyism and cut George loose.” – former high-level ABC News staffer

Despite the criticism, ABC News appears to be prioritizing stability, particularly for its flagship program “Good Morning America,” which is currently trailing NBC’s “Today” in ratings. Stephanopoulos, who reportedly earns around $20 million annually, is seen as a key figure for the show, with no apparent successor in place.

Implications for Future Media Coverage

The settlement raises questions about how media companies will handle similar situations in the future. Some industry experts argue that news organizations should stand firm and litigate when appropriate, rather than settling to avoid public exposure. However, the reality of high-stakes defamation cases often leads companies to settle, as seen with Fox News’ $787 million settlement with Dominion Voting Systems earlier this year.

“There was a real fear of an adverse judgment of a larger amount that was paid in a settlement” – Lee Levine

As the media landscape continues to evolve, this case serves as a stark reminder of the challenges facing news organizations in balancing journalistic integrity with legal and financial considerations. The outcome of this settlement may have far-reaching implications for how media companies approach coverage of public figures, particularly in an era of heightened political polarization and increased scrutiny of the press.

Sources:

  1. George Stephanopoulos signs new deal with ABC News amid Trump lawsuit turmoil
  2. Disney, ABC News continue to take heat for massive Trump settlement: ‘Low, low point’
  3. Inside Disney’s Decision to Settle a Trump Defamation Suit
  4. ABC’s Decision to Settle with Trump Came from the Very Top, And It’s Causing Internal Problems: Report

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