ABC News paid $15 million to settle the defamation lawsuit Donald Trump brought against the outlet and star anchor George Stephanopoulos because its parent company, Disney, had several major concerns.
Chief among them, according to The New York Times on Wednesday, was that the “vindictive” president-elect would take the legal battle all the way to the Supreme Court.
Disney feared this “worst case scenario,” according to The Times, would “become a vehicle for Mr. Trump and his allies to overturn the landmark First Amendment decision in New York Times v. Sullivan. That 1964 ruling, as well as a handful of subsequent cases, made it much harder for public figures like Mr. Trump to win libel lawsuits.”
Before it would have reached that point, Disney was also apparently worried about its chances of winning the case in Florida.
In July, Magistrate Judge Lisette Reid indicated in a filing that Trump had a worthwhile case. Stephanopoulos had said on air a number of times that Trump was found “liable for rape” in the civil case E. Jean Carroll brought against him. In fact, Trump was found liable for sexual abuse, which carries a different definition in New York, where the case took place.
“A reasonable jury could interpret Stephanopoulos’ statements as defamatory,” Judge Rei wrote. “Stephanopoulos stated 10 times that a jury — or juries — had found plaintiff liable for rape.”
The judge’s comments, coupled with the fear a Florida jury would award Trump more than the $15 million he ultimately received, evidently pushed Disney towards settling.
And yet, another concern for Disney was maintaining a semi-warm relationship between Trump and its news operation. As The Times put it, “Trump’s animus could also make it harder for ABC News to do its job” once he returns to The White House.
Ultimately, the settlement was recommended by Disney’s general counsel and approved by CEO Bob Iger, per The Times.
Still, there are other reasons Disney might have pushed for a settlement, experts say. Attorney Danny Karon told Fox News it was “smart” for ABC News to settle because the longer the case dragged on, the better it would likely go for Trump.
“Channeled through the elements of a defamation claim, the facts supported a verdict for President Trump,” Karon said. “And the longer into a case the parties go, the greater the stakes become, which often results in larger money damages. That ABC News was able to evade a jury verdict for only $15 million is something — for this, it should thank President Trump.”
A former “ABC insider” also told Fox News that it was wise to settle, because the discovery process would likely highlight “very damaging” emails from Stephanopoulos, who served as Bill Clinton’s communications director in the ’90s.
