ABC News caves to Trump, settling defamation suit for $16 million in a move that could cripple media freedom.
At a Glance
- ABC News settles with Trump for $16 million over Stephanopoulos’s “rape” comment
- Settlement includes $15 million for Trump’s presidential library and $1 million for legal fees
- Decision sparks internal turmoil and concerns about press freedom
- Media law experts warn of potential encouragement for more lawsuits against news outlets
- Stephanopoulos signs new contract amid controversy, highlighting ABC’s priorities
ABC’s Costly Capitulation: A $16 Million Settlement with Trump
In a move that has sent shockwaves through the media industry, ABC News, a subsidiary of Disney, has agreed to a $16 million settlement with President-elect Donald Trump. The decision, spearheaded by CEO Bob Iger, aims to resolve defamation claims against George Stephanopoulos, who incorrectly stated on air that Trump was found “liable for rape” instead of “sexual abuse.” This settlement, which includes $15 million earmarked for Trump’s presidential library and $1 million for legal expenses, has raised concerns about media freedom and the protections available to news organizations.
The settlement has been met with a mix of outrage and disbelief within ABC News and the broader journalistic community. Many see it as a dangerous precedent that could embolden Trump and his allies to file more lawsuits challenging the First Amendment. The internal reaction at ABC has been one of frustration and disappointment, with journalists and producers worried about the implications for their ability to cover the incoming Trump administration critically.
Disney, which owns ABC News, agreed to pay a $16 million settlement to Donald Trump to avoid a messy lawsuit that the company believed would have potentially damaged the Disney brand, ABC News, and potentially undermined First Amendment rights.https://t.co/Owc8C7Ishu
— The New Republic (@newrepublic) December 18, 2024
Legal Battle Averted, but at What Cost?
Disney executives reportedly believed they had a flawed case and that continuing the fight could harm press protections and the Disney brand. Their concerns increased after Federal Judge Cecilia M. Altonaga denied Disney’s motion to dismiss the suit and criticized their arguments in a 21-page order. Judge Altonaga noted that “a reasonable jury could interpret Stephanopoulos’s statements as defamatory,” highlighting the potential risks of proceeding to trial.
However, some media law scholars argue that ABC News could have won the case, given the high “actual malice” standard required in defamation cases involving public figures. The decision to settle has been viewed by many as a missed opportunity to defend press freedoms and stand up to intimidation tactics.
It is hard to imagine ABC winning, however, considering that Stephanopolous stated falsely ten times that Trump had been “found liable for rape.” That was not true, and the journalist’s own statements showed that he knew it was not true.
Stephanopoulos Remains, but at What Price?
Adding fuel to the controversy, George Stephanopoulos, the co-host of “Good Morning America” at the center of the defamation claim, has signed a new multi-year contract with ABC News. This decision has raised eyebrows and drawn criticism from both inside and outside the network. Some argue that it sends a mixed message about accountability and the network’s priorities.
Despite the controversy, ABC News appears to have prioritized stabilizing “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.
