CNN is gearing up for a high-stakes legal battle as the network has retained new legal representation in a defamation lawsuit brought by Navy veteran Zachary Young. The lawsuit, stemming from CNN’s coverage of Young’s security consulting company, Nemex Enterprises Inc., centers around accusations that the network defamed Young by portraying him as an illegal profiteer during the chaotic U.S. withdrawal from Afghanistan in 2021.
According to court filings, CNN has hired attorneys Dave Axelrod and Joe Bailey from the law firm Ballard Spahr LLP after settlement negotiations with Young collapsed. The new legal team will face off against Young’s attorney, Vel Freeman, who insists that CNN’s fresh legal muscle won’t change the facts of the case. “More lawyers don’t change the underlying facts, which demonstrate CNN defamed Mr. Young,” Freeman told Fox News Digital. The case is set to head to trial in January 2025.
At the heart of the lawsuit is a segment that aired on The Lead with Jake Tapper on November 11, 2021, which featured CNN correspondent Alex Marquardt. The report alleged that Afghans trying to flee the country during the chaotic withdrawal were being taken advantage of by companies demanding exorbitant fees.
Marquardt singled out Young and his company, accusing him of charging up to $75,000 for evacuations. Marquardt showed a photo of Young and detailed how Nemex Enterprises was demanding $14,500 per person for transportation to the United Arab Emirates.
Young contends that CNN’s report not only misrepresented his business practices but also destroyed his reputation. He claims that his company was operating within the difficult logistical and financial realities of evacuating people from Afghanistan.
Young provided CNN with a statement explaining that sponsors often cover evacuation costs for Afghans, and pricing was determined by volatile conditions on the ground. However, the segment portrayed him as refusing to justify the costs and profiting from desperate refugees, focusing on him as the sole target of the story.
Despite mediation efforts on September 11, 2024, the two parties were unable to reach a settlement, with the court declaring an impasse. The potential stakes of the trial are significant. NewsBusters reported that the damages could soar to $1 billion or more, depending on compensatory, emotional, and punitive awards.
Adding to CNN’s concerns, a recent court decision has allowed Young’s legal team to subpoena sensitive financial information from the network, including data presented to its parent company, Warner Bros. Discovery. This financial discovery could play a crucial role in determining any potential damages should the court rule in Young’s favor.
CNN’s decision to bring in high-profile attorneys like Axelrod, who previously defended The New York Times in a defamation case brought by Sarah Palin, signals that the network is preparing for a drawn-out and possibly costly trial. While CNN has declined to comment, the case is poised to shed light on the network’s reporting practices and could have broader implications for media accountability.
