A new lawsuit against CNN, which seeks the network’s total valuation, could potentially reveal key financial “secrets” about the company. The lawsuit was filed by Zachary Young, the owner of Nemex Enterprises Inc., in the circuit court of Bay County, Florida. Young claims that CNN tarnished his company’s reputation with a story about its role in the 2021 Afghanistan withdrawal, implying that his business illegally profited while assisting Americans and Afghans in escaping dangerous conditions.
As part of the lawsuit, Young is demanding CNN disclose its financial records, which would allow 14th Judicial Circuit Judge William Henry to determine an appropriate penalty. Nicholas Fondacaro, associate editor at NewsBusters, who reported on an initial hearing, noted that the handover of documents will be a crucial moment for CNN. The network will face significant pressure to provide transparent and accurate assessments of its valuation during the legal proceedings.
“Essentially, this will act as a way to double check to see if CNN was being honest with the financial documents they were turning over as part of discovery; comparing what they turned over to Young’s legal team vs what they told corporate,” Fondacaro told Fox News. Puck reporter Eriq Gardner wrote that the judge’s decision “sent a jolt through CNN’s executives offices.”
“Young has won a green light to seek punitive damages,” Gardner wrote. “Accordingly, Young’s attorneys will soon be receiving documents to assess CNN’s net worth, so they can argue before a jury just how big a penalty Young should receive,” he continued. “The judge has also ordered a deposition for Jake Tapper, who will likely have to disclose his salary and contract negotiations.”
After the ruling, Gardner noted that CNN’s lawyer Charles Tobin “visibly bristled” and argued an October 11th deadline to comply “upends” his plans for the trial. Young doesn’t have much sympathy for the multinational company’s plight: the U.S. Navy veteran accused CNN of “destroy[ing] his reputation and business by branding him an illegal profiteer who exploited desperate Afghans” during a 2021 story on Jake Tapper’s program.
In his segment, Tapper said Young’s company was exploiting “Afghans trying to get out of the country” who would often “face a black market full of promises, demands of exorbitant fees, and no guarantee of safety or success.” He then turned to CNN correspondent Alex Marquardt, who specifically named Young while the network displayed his headshot on screen. Marquardt reported that Young’s company was charging $75,000 to transport a group of passengers to Pakistan, with an additional cost of $14,500 per person to continue to the United Arab Emirates. “Prices well beyond the reach of most Afghans,” Marquardt told viewers.
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