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CNN is facing a potential $1 billion punitive damages lawsuit by Zachary Young and Nemex Enterprises Inc. over defamation claims.
The lawsuit stems from CNN’s coverage of Young’s involvement in Afghanistan evacuation efforts, where he was accused of operating in a “black market” by charging high fees.
Judge William Scott Henry allowed Young to seek punitive damages, citing evidence of intentional misconduct by CNN.
“We must consider whether Young made a reasonable evidentiary proffer to provide a reasonable basis for recovery of punitive damages at this stage. After reviewing the totality of the proffered evidence in the light most favorable to Young, we conclude that he did,” Judge Henry wrote.
“Young sufficiently proffered evidence of actual malice, express malice, and a level of conduct outrageous enough to open the door for him to seek punitive damages. Whether Young can ultimately prevail is not the issue before us.”
Despite CNN’s appeal, the appellate court upheld the ruling, indicating the possibility of significant financial repercussions for the news network.
