A defamation lawsuit brought by a U.S. Navy veteran against a major media outlet is shaping up to be a much bigger problem for the network than initially expected. On Friday, a new motion filed in the case revealed some surprising details about the media company’s financial operations—details that could play a huge role in determining how much the veteran might win if he proves his case.
The lawsuit, filed by Zachary Young in Bay County, Florida, revolves around a 2021 news segment that aired during a popular program. In the segment, Young says he was falsely portrayed as an “illegal profiteer” charging “desperate Afghans” high fees to help them flee Afghanistan during the U.S. withdrawal from the country. He claims this characterization damaged his reputation and was completely false.
The veteran, who lives in Austria and runs a Florida-based company called Nemex Enterprises, says his work was aimed at saving lives. But he believes the segment twisted his efforts into something shady for the sake of sensationalism. The media outlet has argued that their reporting was based on reliable research and that they believed the story was true.
Two separate judges, in Florida and Delaware, have already ordered the network and its parent company to hand over financial records as part of the pretrial discovery process. But Young’s legal team claims that getting those documents has been a constant battle.
In a motion filed recently, Young’s lawyers say they’ve discovered why the media outlet hasn’t provided detailed financial records: they don’t exist. During a deposition, the network’s Chief Financial Officer admitted that the company doesn’t keep traditional cash flow statements or balance sheets. Instead, its parent company, Warner Bros. Discovery, manages all its finances. According to Young’s motion, the parent company treats the network as part of a larger financial pool, mixing its earnings with those of other business segments. This setup means the network doesn’t directly control or even see the cash it generates.
Young’s lawyers argue that if the media company doesn’t have its own financial records, then the court should allow the jury to consider the finances of its parent company when deciding on damages. Punitive damages—meant to punish wrongdoing and deter future misconduct—could become very expensive if based on Warner Bros. Discovery’s massive resources.
The veteran’s legal team also wants the court to block the media outlet from bringing up its net worth during the trial since it claims not to know its own financial standing. Instead, Young’s team says the focus should shift entirely to the parent company’s financial records.
This case has already been a rocky road for the network. A judge recently ruled that Young can proceed with his claims of defamation and even seek punitive damages. That means if he wins, the jury could potentially award millions of dollars in damages.
The lawsuit centers on how the media outlet reported Young’s efforts to help Afghans escape after the Taliban takeover. A segment aired on November 11, 2021, featured a photo of Young alongside captions that referred to “black markets” and “exorbitant fees.” Young says the use of the term “black market” made him look like a criminal, which wasn’t true. The media outlet has stood by its reporting, saying it reflected what their journalists believed to be accurate at the time.
Judge William Henry of Florida’s 14th Judicial Circuit Court recently ruled that the case contains enough evidence for a jury to decide whether the network knowingly aired false information or acted recklessly.
Young’s legal team has accused the network of playing games during the discovery process, failing to deliver documents it promised to provide. The latest motion also suggests that the network misled them about what kind of financial information it could produce.
As both sides prepare for trial, this legal battle could have significant consequences, not just for Young, but for how large media companies handle financial transparency in future cases. For now, all eyes are on the court in Bay County, where a jury will soon decide the outcome of this high-stakes defamation suit.
