Categories: Business

Disney’s swift Trump settlement sparks backlash and fears for press freedom

ABC News’ parent company, Disney, quickly settled Donald Trump’s defamation lawsuit for $15 million last week, citing concerns over damaging press protections and avoiding a potential Supreme Court challenge to landmark First Amendment rulings.

Judge’s ruling prompted Disney’s action

GERMANY – 2024/12/16: In this photo illustration, The Walt Disney Company logo seen displayed on a monitor. (Photo Illustration by Valera Golovniov/SOPA Images/LightRocket via Getty Images)

A July ruling by Judge Cecilia Altonaga rejecting Disney’s motion to dismiss Trump’s lawsuit raised concerns about the network’s ability to win the case. The judge noted that a reasonable jury could find anchor George Stephanopoulos’ repeated claim that Trump was found liable for rape defamatory.

Decision influenced by potential jury bias

Disney executives feared a Florida jury might favor Trump, given the trial’s location and Trump’s political influence, leading to higher damages.

Settlement terms

Disney agreed to pay $15 million, cover Trump’s legal fees, and issue a statement expressing regret over the error.

Concerns over First Amendment protections

NEW YORK, NEW YORK – DECEMBER 12: President-elect Donald Trump speaks at a reception at the New York Stock Exchange (NYSE) after being named TIME’s “Person of the Year” for the second time on December 12, 2024 in New York City. Trump followed the event by ringing the opening bell on the trading floor. (Photo by Spencer Platt/Getty Images)

Legal experts and media pundits warn the settlement could embolden public figures to target press freedoms, with fears that future cases might challenge New York Times Co. v. Sullivan, a critical First Amendment precedent.

Backlash from media and legal observers

Critics, including media and Democratic lawyers, called Disney’s decision a capitulation, raising concerns about the precedent it sets for journalistic independence and legal protections for the press.

Trump’s next target: The Des Moines Register

Following his legal victory, Trump has sued The Des Moines Register over an inaccurate pre-election poll, further stoking concerns about the chilling effect on media organizations.

Herbert Bauernebel

Herbert Bauernebel has been reporting from New York since 1999 and currently works for Bild.de, OE24 TV, and US Live. He also runs the news portal AmerikaReport.de. Bauernebel has covered nearly all major US events of the past quarter-century, including 9/11, Hurricane Katrina, Barack Obama’s election, Donald Trump’s surprise victory, the pandemic, last year’s election showdown, as well as natural disasters such as hurricanes and oil spills. He has also reported firsthand on international events, including the Asian tsunami, the Haiti earthquake, and the Fukushima disaster. He lives in Brooklyn with his family and holds degrees in communication and political science from the University of Vienna. Bauernebel is the author of a book about his experiences on 9/11, And the Air Was Full of Ash: 9/11 – The Day That Changed My Life.

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