CNN management very worried about outcome of defamation suit as trial heats up, insider says
The defamation lawsuit involving CNN and concerns that it could lead to a large payout to the plaintiff are the main concerns of the network’s management, while employees are already struggling with low ratings and waiting for cuts, insiders say.
CNN is already struggling with the lowest ratings and informed of the impending layoffs as he prepares to cover the upcoming second Trump presidency.
He is also now in a public defamation trial over a 2021 segment that prosecutor Zach Young claims defamed him by implying he made illegal money helping people flee Afghanistan on the “black market” during Biden administration military withdrawal from the country.
“It’s a big concern of senior management,” an insider told CNN Fox News Digital. “All the damn things, text messages, etc. have already been released. So I don’t think there’s a concern in terms of exposure. But I think there’s definitely a concern about the outcome. It seems very likely that CNN will have a huge payout at the end of this.”
CNN anchor Jake Tapper and correspondent Alex Marquardt during a 2021 segment at the center of a defamation lawsuit against the network. (CNN/Screenshot)
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Young claims CNN “destroyed his reputation and business” by branding him an illegal profiteer who exploited “desperate Afghans” during a Nov. 11, 2021, segment that first aired on CNN’s “The Lead with Jake Tapper.”
The discovery process led to some embarrassing revelations, such as internal communications between CNN employees showing that editors were concerned about the initial segment but aired it anyway. Other communications revealed that CNN employees used profanity and derogatory language when discussing Young privately. Young also showed the message he warned about CNN Correspondent Alex Marquardtwho reported the segment, that he would seek legal damages if he continued the story.
However, since this all relates to the 2021 segment, the CNN insider added that it’s not a topic of regular conversation among network regulars.
Another CNN insider said the lawsuit was “a big risk,” but said the network’s lawyers were pleased with the outcome. But, they added, with possible looming layoffs and ongoing ratings issues, there are plenty of other things to worry about.
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U.S. Navy veteran Zachary Young believes CNN “destroyed his reputation and business” by branding him an “illegal profiteer” who exploited “desperate Afghans” during a Nov. 11, 2021, segment that first aired on CNN’s “The Lead with Jake Tapper”.
“I don’t know if it will work. But for some reason it hasn’t permeated the organization at all,” they said. “And that’s probably because the organization is in toxic shock and crisis every day because of its situation, so there are bigger fish for morale.”
“Grades, cuts, confusion over strategy, all of the above,” they said. “Which is not unique to CNN, but it is acute for CNN.”
CNN CEO Mark Thompson, who took over in 2023 after the ouster of CEO Chris Licht, did not deny to employees at a town hall this week that layoffs are coming, according to reports.
Puck News reported in November that “hundreds” of CNN employees are expected to be hit with layoffs in the coming months as Thompson looks to implement priorities in digital. Thompson, who is credited with reviving The New York Times’ business model, has already dabbled with CNN, introducing a subscription plan for its news site last year.
CNN, along with progressive outlet MSNBC, experienced a drop in viewership after the victory of President-elect Donald Trump. CNN hit another new low in December, ending the year with the lowest total day audience in the network’s history, with a paltry 91,000 in the 25-54 demo and 481,000 total viewers.
CNN chief Mark Thompson took over the network in 2023. (Sanjit Das/Bloomberg via Getty Images)
The first CNN insider praised Thompson’s leadership but said people remain concerned about the industry-wide issues that led to the layoffs other large media companies over the past year, such as the Washington Post, HuffPost TIME and the Los Angeles Times.
“I think people still feel like it’s a very uncertain time in the whole business, so I think there’s still a sense of ‘what’s going to happen with CNN’ that people don’t really know about,” they said.
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Fox News Digital has reached out to a CNN spokesperson for comment.
Fox News’ Joseph A. Wulfsohn and Brian Flood contributed to this report.
