In a stunning turn of events, CNN is embroiled in a major lawsuit that threatens to pull back the curtain on its confidential internal finances. The legal action, stemming from the network’s controversial coverage of the disastrous 2021 Afghanistan withdrawal, seeks not only damages but also demands transparency regarding CNN’s valuation and highly guarded financial “secrets.”
At the center of the lawsuit is Zachary Young, the owner of Newmex Enterprises Inc., whose company was involved in efforts to evacuate Americans and Afghans during the chaotic withdrawal from Afghanistan. Young alleges that CNN defamed his business by implying it had taken advantage of the crisis, illegally profiting from the desperation of civilians. The network’s reporting painted a grim picture, using terms like “black market” and “exorbitant fees,” which Young says were baseless accusations aimed at portraying him as an opportunist exploiting a humanitarian disaster.
According to the lawsuit, CNN aired a segment hosted by Jake Tapper, where correspondent Alex Marquardt reported that Afghans trying to flee the country faced a “black market full of promises, demands of exorbitant fees, and no guarantee of safety or success.” In the segment, Marquardt claimed they contacted Young but received evasive responses. He quoted a text from Young stating that evacuation costs were “highly volatile” and tied to the “environmental realities” of the situation. Marquardt also cited Young saying, “That’s how economics works, unfortunately,”—a comment CNN used to suggest greed and exploitation.
Young, however, insists this portrayal was not only inaccurate but malicious. The lawsuit accuses CNN of intentionally misleading the public, ignoring Young’s clarifications just hours before the report aired. In fact, court documents reveal that Young had pointed out factual inaccuracies in the story, but CNN went ahead with the broadcast regardless.
The legal battle now opens the door for Young to seek punitive damages, with the court granting his attorneys access to CNN’s financial records in order to determine an appropriate penalty. This could be a significant blow to CNN, as it risks exposing the network’s internal finances, including sensitive details such as the salaries of its top personalities. Jake Tapper himself may be required to disclose his salary and contract negotiations as part of the deposition.
NewsBusters’ associate editor, Nicholas Fondacaro, noted that the case could provide a rare opportunity to “double check” the financial documents CNN turns over in discovery against what the network tells corporate. It’s a test of transparency that has sent shockwaves through CNN’s executive offices.
Puck reporter Eriq Gardner highlighted the significance of this ruling, writing that it “sent a jolt through CNN’s executives,” who now face the reality of a potentially damaging financial exposure. Gardner added, “Young has won a green light to seek punitive damages,” meaning the financial fallout for CNN could be severe if Young’s team convinces a jury to award a significant penalty.
The lawsuit raises broader questions about media accountability and journalistic ethics, particularly in how networks handle critical stories about individuals and businesses. For many conservatives, this lawsuit is emblematic of the bias and reckless reporting they have long criticized CNN for. By using terms like “black market” and “exploit” without evidence, CNN may have crossed a line from reporting to defamation.
Whether Young ultimately prevails in his lawsuit remains to be seen, but the case is already a major embarrassment for CNN. If nothing else, it highlights the growing frustration many Americans feel toward a mainstream media they believe too often fails to meet the basic standards of honesty and integrity.
