Disney Settles with Trump in Defamation Case Over ABC News Report

Disney settled a defamation lawsuit with President-elect Donald J. Trump against ABC News, agreeing to donate $15 million to his presidential foundation and museum. The decision comes after a federal judge rejected Disney’s motion to dismiss the case, citing that Stephanopoulos’s statements could be interpreted as defamatory. Judge Cecilia M. Altonaga also ordered near-immediate depositions for Mr. Trump and ABC News anchor George Stephanopoulos.

The settlement was recommended by Horacio Gutierrez, Disney’s general counsel, and approved by Robert A. Iger, the company’s chief executive. The decision was made after considering the potential risks of fighting the lawsuit, including the possibility of a jury awarding Mr. Trump a significant sum exceeding what it would cost to settle.

Disney executives were concerned that a jury in Florida might side with Mr. Trump and potentially harm the press protections for everyone. They also feared that fighting the case could lead to an appeal, which carried substantial risk, as well as harm to their brand.

Media experts predicted that the settlement would embolden Mr. Trump to file other lawsuits against news outlets. The decision has sparked swift backlash from some media professionals, with Paul Farhi calling it an “awful precedent” and Marc E. Elias saying “Knee bent. Ring kissed. Another legacy news outlet chooses obedience.”

The high threshold required by courts for public figures like Mr. Trump to prove defamation was also noted by experts. Many news organizations have struggled with declining public trust and deteriorating finances, making the settlement a significant concern.

Source: https://www.nytimes.com/2024/12/18/business/media/disney-trump-abc-lawsuit.html