As a seasoned journalist with decades of experience under my belt, I find this situation to be a stark reminder of the ever-evolving landscape of media and politics in the United States. The settlement between ABC News and former President Donald Trump over a seemingly innocuous comment made by George Stephanopoulos is a troubling development that has far-reaching implications for press freedom and the role of journalism in our society.
Back in June 2017, just before a court trial was set to begin, Disney paid out a massive $177 million to settle a libel lawsuit filed by a beef company. The controversy originated from a series of ABC News reports in 2012, presented by popular anchor Diane Sawyer, which labeled the processed meat as “pink slime.” This settlement was the largest ever for a defamation case at the time and has since been surpassed only by two other cases: Alex Jones’ payment to Sandy Hook families ($1.438 billion) and Fox News’ payout to Dominion Voting Systems ($787.5 million).
By 2024, George Stephanopoulos has become the recognizable figure at ABC News and one of television’s top-earning anchors, taking home an annual salary of up to $18 million. Meanwhile, within Disney’s executive offices on the Burbank lot, a sense of deja vu was stirring due to a pending defamation lawsuit filed by former and incoming President Donald Trump in March. This adversary, unlike a South Dakota food processor, held significantly more power and was just as fierce. However, a prolonged battle with this president-elect was similarly uncertain and could potentially be damaging.
Says a source familiar with the inner workings of ABC: “This was ‘Pink Slime II: The Sequel.’”
In an unexpected turn of events, Disney’s CEO Bob Iger approved a $15 million settlement and an extra $1 million for legal expenses, along with a quasi-apology on December 13th, which left ABC News employees and the larger journalistic community stunned. It was reported that George Stephanopoulos, who works at ABC News, was unaware of Disney’s public retreat until just before the news was released. Neither Disney nor Stephanopoulos provided comments on the matter.
As CEO, Iger had consistently supported Stephanopoulos, even acknowledging his quirkier tendencies during his tenure as “GMA” sought to focus more on pop culture and celebrities to boost ratings. (Last week, the morning show garnered an average of 2.69 million viewers, trailing behind NBC’s “Today” at 2.83 million.) When Stephanopoulos hinted in 2020 that he might depart from ABC as his contract was nearing its end, Iger actively facilitated the negotiations to keep him on board – offering the anchor a new lucrative deal and the opportunity to create documentaries for Hulu, such as “Pretty Baby.
With Stephanopoulos’ contract ending in early 2025, there’s uncertainty among ABC insiders whether he will continue with the network following recent developments. Sources indicate that Stephanopoulos has expressed dissatisfaction with the settlement and apology he was required to make. For ABC, it might not be financially viable to pay an anchor $18 million annually, especially since “GMA” doesn’t generate as much advertising revenue as it used to. (Similarly, Hoda Kotb announced her exit from a full-time role on the “Today” show after NBC attempted to reduce her salary.)
Trump’s choice to file a lawsuit against ABC News and subsequent settlement provides a glimpse into potential challenges that journalists may face during his second term. As one long-standing media executive in charge of network TV news puts it, “We’re shocked.” This is seen as submission, but also retaliation for the media’s lack of precision. They should have been more cautious and prepared for this kind of situation.
For observers who monitor First Amendment issues, the settlement will have a chilling effect.
As a staunch advocate for free speech, I, Katie Blankenship (senior director at PEN America), find it conveying a quieting call and leaning towards prudence.
In her statement, the executive director of Society Professional Journalists, Caroline Hendrie, expressed worry that the seemingly unclear choice to resolve the case could potentially establish a problematic precedent, suggesting that news outlets may not be as committed to defending their journalists in legal proceedings.
However, Disney encountered significant challenges due to a lawsuit sparked by an anchor’s erroneous statements during a live broadcast. The comments wrongly alleged that Donald Trump had been convicted of rape by a jury, when in reality, the jury had found Trump liable for sexual abuse, specifically against writer E. Jean Carroll, during the 1990s. Remarkably, Stephanopoulos repeated this mistake ten times on a March episode of “This Week,” the Sunday news program he hosts.
Besides Stephanopoulos, other notable figures have employed the term “rape” in a controversial manner. For instance, Illinois Governor JB Pritzker referred to Trump as an “adjudicated rapist” during his conversation with Jen Psaki on MSNBC. Similarly, Representative Jamie Raskin made this assertion during a discussion with Dana Bash on CNN. Furthermore, actor Bradley Whitford utilized the same phrase during a campaign rally for Kamala Harris in Wisconsin last October.
ABC News maintains strict journalistic standards, and an anchor’s error is distinct from that of a guest. This makes George Stephanopoulos an obvious focus, yet many are puzzled as to why Disney chose to concede so promptly during the legal proceedings. In July, a federal judge in Florida ruled against Disney’s attempt to dismiss Trump’s lawsuit, allowing it to continue. However, at that point, the case was not guaranteed to proceed to trial, where the substantial costs of litigation would become apparent.
Indeed, the decision caused quite a stir within the circles of media law experts, as stated by Katie Townsend, the legal director of the Reporters Committee for Freedom of the Press.
She expresses her concerns, stating, “It’s quite worrying indeed.” The issue is that this resolution, considering its timing and characteristics, could potentially inspire and empower President Trump and those around him to initiate not only lawsuits, but also threats of legal action in similar situations.
Townsend expressed her astonishment that ABC chose not to proceed with the case using the discovery process leading to a summary judgment. (In contrast, ABC did take this approach in the “pink slime” case, as did Fox News when fighting Dominion. This decision by both networks exposed embarrassing emails and messages showing potential bias, which were gathered during the discovery phase.)
As a media consultant focusing on liability insurance, I found it somewhat unexpected that ABC didn’t explore their robust legal defenses in this case. They had the opportunity to argue two key points: first, that Stephanopoulos’ portrayal was substantially accurate; second, that he didn’t act with malice – meaning he didn’t intentionally disregard the truth.
Milton stated, “There’s talk that this could be seen as yielding to Trump. Sometimes, business concerns can play a role. And the larger the business, the more complex its connections become.
Some believe the case was winnable for the network.
Ted Boutrous, a First Amendment attorney who previously disputed press access with the initial Trump administration, expresses his belief from the start that ABC and George Stephanopoulos possessed robust arguments to overcome this lawsuit. He believes they had numerous legal and constitutional safeguards that significantly bolstered their position.
Boutrous forecasts that the resolution could spark a “widespread impact in the journalistic world,” effectively empowering Trump to pursue additional lawsuits.
Some people think that reaching an agreement at this moment – just one month before Trump begins his second term – was the most advantageous course of action. Disney, with a global revenue of $88 billion in 2023, preferred not to initiate 2025 with a prolonged dispute with Trump, who, as the occupant of the highest office, could have consistently criticized the company’s movies, TV shows, theme parks, and merchandise to the approximately 77 million Americans who voted for him. This could potentially harm Disney’s reputation and business.
Gregory Doll, an attorney at Doll Amir & Eley in Los Angeles, calls Disney’s move “just smart business.” He adds: “This was just going to be a cloud hanging over them. ABC News is going to want to have interviews with [Trump’s] cabinet and other officials.”
As a movie enthusiast, I’ve got to say that things are heating up between Disney and Elon Musk, who’s been appointed to head Trump’s “Department of Government Efficiency” alongside Vivek Ramaswamy. Musk is standing by actress Gina Carano in her legal dispute with Disney over her dismissal from “The Mandalorian,” a move that some consider offensive by the company. Disney, however, seems to be choosing its battles carefully when it comes to Trump and his inner circle.
However, Townsend contends that ABC’s intentions are secondary compared to the potential influence of the lawsuit on others. She stated that politicians have a history of exploiting the court system to target their detractors.
She stated, “I don’t notice anything indicating it’s slowing down. It seems likely that it will grow instead.
Case in point: In the immediate aftermath of the settlement, Trump filed a civil lawsuit against the Des Moines Register for publishing J. Ann Selzer’s poll days before the election that showed Harris leading Trump in the state by three points, citing a margin of error of plus or minus 3.4 percentage points. Trump would go on to win Iowa by 13 points.
Disney, being one of the largest corporations globally, has sufficient resources to manage a $16 million expense and weather a brief period of negative publicity. This week, the company agreed to a $233 million settlement in a class action lawsuit concerning employee wages, an issue that has tarnished Disney’s reputation, with figures ranging from progressive politicians to Abigail Disney criticizing the company’s labor practices. However, discussions about wage inequality at Disney were swiftly overshadowed by another controversy: Disney withdrawing a transgender storyline from Pixar’s “Win or Lose” streaming series. In today’s fast-paced news environment, this controversy is likely to be supplanted by another issue in the near future. Given that cultural conflicts have had a detrimental effect on Disney’s financial performance in recent times, Iger seems prepared to endure temporary setbacks rather than engage in politics.
Says Doll: “I don’t think they want to be in a constant state of acrimony.”
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2024-12-18 21:18