Disney Settles Defamation Lawsuit with Trump for $15 Million
In a sudden move, Disney has agreed to settle a defamation lawsuit filed by former President Donald Trump for $15 million. The lawsuit stemmed from a series of comments made by ABC News anchor George Stephanopoulos on his program “This Week” regarding Trump’s alleged involvement in a rape case. While the settlement amount is the same as the initial proposed amount, the additional payment of $1 million for Trump’s legal fees will make the total payout come close to $177 million, the largest settlement of its kind.
The suit was filed in March by Trump, who claimed that Stephanopoulos’ comments “were false and defamatory” and caused harm to his reputation. At the time, the complaint alleged that Stephanopoulos said, “Donald Trump has been found liable for rape by a jury.” Trump, who has denied involvement in the alleged rape incident, claimed that the repeated use of the phrase made it seem like he was found guilty of the crime.
The settlement has caused a stir in the journalism community, with many insiders at ABC News and external experts expressing surprise and frustration with the decision. Despite being a champion of Stephanopoulos, Disney CEO Bob Iger authorized the settlement, which has left the anchor upset and uncertain about his future at the network.
This settlement marks the second large defamation payout made by a major media company in the past few years. In 2017, Disney reached a $177 million settlement with a beef company whose product was referred to as “pink slime” by ABC News. The high-profile settlement has raised concerns about the chilling effect on journalists and the potential consequences for the media industry if Trump and his allies pursue similar lawsuits.
The news comes as Stephanopoulos, who is one of the highest-paid anchors on television, is nearing the end of his contract with ABC News. His current deal expires in early 2025, and insiders indicate that he may not continue at the network given his dissatisfaction with the settlement. The anchor’s departure would be a significant blow to ABC News, which already faces declining ratings and profitability.
The settlement has drawn criticism from First Amendment groups and media experts, who argue that it sets a dangerous precedent for the legal system and may embolden Trump and his associates to pursue more lawsuits. Some have also questioned whether Disney’s decision was purely a business move, avoiding the potential costs and complications of a protracted court battle.
In the short term, the settlement is expected to have a major impact on the media industry, with some predicting a ripple effect across the landscape. As one expert put it, “This settles a lot of scores,” adding that Trump’s newfound willingness to pursue legal action could lead to a culture of fear and self-censorship among journalists and media outlets.
