CNN parent Warner Bros. Discovery must provide financial information as a defamation lawsuit approaches, a Delaware court said.
FIRST ON FOX – A Delaware court on Friday ordered that CNN’s parent company Warner Bros. Discovery must provide financial documents supporting the plaintiff’s defamation case or the company must provide an “affidavit” that they do not exist.
US Army veteran Zachary Young alleges that CNN defamed his security company, Nemex Enterprises Inc., by suggesting it made illegal profits while helping people flee Afghanistan as the Biden administration withdraws troops from the country in 2021. ” during the segment “The Lead with Jake Tapper.”
A Florida judge previously agreed with Young’s legal team that CNN must hand over sensitive financial information the cable network presented to its parent company, Warner Bros. Discovery, to determine the value of CNN. However, Young’s lawyers say they have not received the necessary documents and have filed an enforcement action in Delaware, where Warner Bros. Discovery is based there.
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A photo of plaintiff Zachary Young was broadcast by CNN during the segment in question. (CNN/Screenshot)
Young’s attorneys, Blake Bennett and Joe Delich, said Warner Bros. Discovery was “unable to complete the financing” related to the financial statements and balance sheets.
“It is inconceivable that Warner Bros. Discovery cannot provide cashflow and balance sheet information to its entire subsidiary,” Delich told Judge Lynne Parker.
“Warner Bros. Discovery produced some documents but did not release information about cash flow, or any kind of balance sheet information,” he continued. “We know that Warner Bros. Discovery has the power to do this.”
Delich then explained that Warner Bros. Discovery prepares consolidated financial statements that are publicly filed with the SEC.
“In order to prepare consolidated financial statements, there must be something that needs to be consolidated,” said Delich.
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CNN host Jake Tapper and reporter Alex Marquardt during a segment on a defamation lawsuit. (CNN/Screenshot)
Jennifer Ying, representing Warner Bro. Discovery, argued the plaintiff’s team filed a “premature motion” before the return date of the subpoena, and the subpoena did not specify cash flow statements and balance sheets. Ying also said that Warner Bro. Discovery has “repeatedly” explained that the documents do not exist.
If it doesn’t exist, we won’t be forced to produce anything,” said Ying.
“We have told them twice now that such information does not exist,” he continued. “They refused to accept that. We cannot create information that does not exist.”
Judge William Henry, who is presiding over the case in Florida, previously ruled that CNN is responsible for “producing anything within its possession, custody or control” but said there is no law that would require a CNN executive to swear an oath. a statement or declaration that documents are missing.
Judge Lynne Parker disagreed and said Young’s lawyers need to file a new subpoena detailing the cash flow statements and balance sheets, and CNN’s parent company will be liable if the information is not submitted immediately.
An Afghan woman wearing a burqa searches for recyclables among plastic waste at a landfill on the outskirts of Mazar-i-Sharif on September 28, 2024. (Photo by Atif Aryan / AFP) (Photo by ATIF ARYAN/AFP via (Getty Images) (Photo by ATIF ARYAN/AFP via Getty Images)
“Well, CNN doesn’t have to give an affidavit, but Warner Bros. does. You’re going to call Warner Brothers asking for these two specific things, and they’re going to release the documents or they’re going to give you an affidavit that they don’t exist,” Judge Parker said.
“You issued a summons immediately,” he continued. “They have 20 days from the date they were issued to respond.”
A public hearing is scheduled to begin on Jan. 6 before Judge Henry in the District Court of Bay County, Florida.
CNN’s segment on the suit, which was shared on social media and repackaged on CNN’s website, began with Tapper telling viewers that CNN correspondent Alex Marquardt had found that “Afghans trying to leave the country face a black market full of promises, demands.” of exorbitant costs, and there is no guarantee of safety or success.”
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CNN host Jake Tapper. (CNN)
Tapper lashed out at Marquardt, who said “desperate Afghans are being exploited” and are being forced to pay “expensive, often impossible” fees to flee the country. Marquardt then nominated Young, putting a picture of his face on the screen and saying that his company was asking for $75,000 to transport a passenger car to Pakistan or $14,500 per person to end up in the United Arab Emirates.
“The prices are out of reach for most Afghans,” Marquardt told viewers.
No other people or companies were named except for Young, who alleged that CNN, by using the terms “black market,” “exploitation” and “rivalry,” unfairly painted him as a villain who preys on the desperate.
Internal communications between CNN employees revealed during the acquisition process indicated that editors were concerned about the segment but aired it anyway. Another internal communication revealed that CNN employees used profanity and derogatory language when discussing Young privately.
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