Disney’s Settlement with Trump: Internal Conflict at ABC News and Media Litigation Risks

I don't know who this is, man in suit with thumbs up.

Disney’s $16 million settlement with Trump sparks internal turmoil at ABC News, raising concerns about media litigation risks and press freedom.

At a Glance

  • ABC News settled with Trump for $15 million plus $1 million in attorney fees over a defamation claim
  • The settlement includes funding for Trump’s future presidential library
  • Internal conflict erupted at ABC News, with journalists fearing challenges in covering the new Trump Administration
  • Media law experts warn the settlement could encourage more lawsuits against news outlets
  • George Stephanopoulos signed a new multi-year contract with ABC News despite the controversy

Disney’s Controversial Settlement Decision

In a move that has sent shockwaves through the media industry, Disney has agreed to a $16 million settlement with President-elect Donald Trump to resolve a defamation lawsuit against ABC News. The decision, authorized by Disney CEO Bob Iger, has ignited a firestorm of controversy within the company and raised alarming questions about the future of press freedom in America.

While some viewed the error as a fleeting mistake that should not have warranted such a substantial payout, Disney executives believed they had a flawed case and feared that continuing the legal battle could potentially harm press protections and the Disney brand.

Internal Conflict and Journalistic Concerns

The settlement has created significant internal conflict at ABC News, with many journalists expressing disappointment and concern over the decision. Some fear that the apology and financial compensation to Trump signal potential challenges in covering the incoming administration critically and objectively.

“ABC News will never live down this capitulation. Never.” – Erik Wemple

Adding to the tension is the fact that George Stephanopoulos, at the center of the controversy, has signed a new multi-year contract with ABC News. This decision has raised eyebrows, given his involvement in the defamation case and his reported $20 million annual salary.

Legal Implications and Future Concerns

The settlement has broader implications for the media landscape, with legal experts warning that it could encourage Trump to file more lawsuits challenging the First Amendment. This fear is not unfounded, as Trump has already filed suits against CBS and the Des Moines Register, claiming deceptive editing and erroneous polling, respectively.

Some legal experts believe that ABC News could have won the case but opted to avoid the risk of larger jury-set damages and negative publicity. However, this decision may set a dangerous precedent, potentially emboldening public figures to use legal action as a tool to silence or intimidate media outlets.

A Victory for Trump, A Blow to Press Freedom?

For Trump and his supporters, the settlement is seen as a significant victory. It not only includes a substantial financial payout but also a contribution to a “Presidential foundation and museum” to be established by Trump. This outcome has left many in the media industry questioning the long-term consequences for press freedom and the ability of news organizations to report critically on public figures.

“It’s disgraceful that George Stephanopoulos continues to earn an eight-figure salary from ABC when he makes false and defamatory statements, ratings at ‘GMA’ are rock bottom, and he is so radioactive he couldn’t even moderate ABC’s presidential debate. Bob Iger needs to put an end to this self-debasing cronyism and cut George loose.” – former high-level ABC News staffer

As the dust settles on this controversial settlement, one thing is clear: the media landscape is entering uncharted territory. With the specter of increased litigation looming, news organizations may find themselves walking an increasingly fine line between robust reporting and legal vulnerability. The true cost of Disney’s decision to settle with Trump may extend far beyond the $16 million payout, potentially reshaping the relationship between the press and those in power for years to come.

Sources:

  1. George Stephanopoulos signs new deal with ABC News amid Trump lawsuit turmoil
  2. Disney, ABC News continue to take heat for massive Trump settlement: ‘Low, low point’
  3. Inside Disney’s Decision to Settle a Trump Defamation Suit
  4. ABC’s Decision to Settle with Trump Came from the Very Top, And It’s Causing Internal Problems: Report

RELATED ARTICLESMORE FROM AUTHOR