A Delaware court has laid down the law for Warner Bros. Discovery, parent company of CNN, in a defamation lawsuit that could have serious implications. The ruling requires Warner Bros. Discovery to produce detailed financial records if subpoenaed, or swear under oath that such documents don’t exist. The case stems from allegations that CNN tarnished the reputation of a security consulting firm during its coverage of the chaotic U.S. withdrawal from Afghanistan under the Biden administration.
The plaintiff, Zachary Young, a U.S. Navy veteran, claims CNN’s reporting falsely implied that his company, Nemex Enterprises Inc., exploited the crisis for profit. Young alleges the network’s segment on The Lead with Jake Tapper destroyed both his business and his personal reputation. Now, his legal team is pushing for transparency regarding CNN’s financial worth, arguing that Warner Bros. Discovery has yet to cough up crucial financial details, including cash flow statements and balance sheets.
Despite an earlier ruling by a Florida judge compelling CNN to turn over these records, Young’s lawyers assert that Warner Bros. Discovery has dragged its feet. Young’s attorneys argue that the corporate giant’s reluctance to provide the necessary documents is baffling, especially given its public SEC filings, which would logically require such information to exist. The legal team has called this delay both frustrating and suspicious, hinting at possible corporate stonewalling.
Warner Bros. Discovery’s legal defense insists the plaintiff’s demands are unfounded, arguing the subpoena was “premature” and claiming the requested documents simply don’t exist. The company’s attorney maintained that it cannot produce records out of thin air and that its repeated denials should be taken at face value. This claim, however, has done little to satisfy either the plaintiff’s legal team or the Delaware court, which has now issued a stronger directive.
Delaware Judge Lynne Parker ruled that Warner Bros. Discovery must either hand over the requested financial records or provide a sworn declaration confirming their nonexistence. The judge emphasized that compliance is non-negotiable, setting a 20-day deadline for Warner Bros. Discovery to respond to a new subpoena specifying cash flow and balance sheet information. With the trial set for January 6 in Florida, all eyes are on how this high-profile battle unfolds and whether CNN’s parent company will face further scrutiny for its handling of the case.
