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CNN parent Warner Bros. Discovery must hand over financial info if subpoenaed as defamation trial looms

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CNN parent Warner Bros. Discovery must hand over financial info if subpoenaed as defamation trial looms

FIRST ON FOX – A Delaware court ordered on Friday that CNN parent company Warner Bros. Discovery has to hand over detailed financial documents if subpoenaed in support of a Plaintiff’s high-stakes defamation lawsuit, or else the company must offer a “sworn declaration” that they do not exist. 

U.S. Navy veteran Zachary Young alleges that CNN smeared his security consulting company, Nemex Enterprises Inc., by implying it illegally profited when helping people flee Afghanistan during the Biden administration’s military withdrawal from the country in 2021. Young believes CNN “destroyed his reputation and business” during a segment on “The Lead with Jake Tapper.” 

A Florida judge previously agreed with Young’s legal team that CNN should hand over sensitive financial information that the cable network presented to its parent company, Warner Bros. Discovery, in order to determine CNN’s net worth. However, Young’s attorneys say that they have not received the appropriate documents and filed a motion to compel in Delaware, where Warner Bros. Discovery is based. 

CNN FACES DEFAMATION SUIT OVER AFGHANISTAN WITHDRAWAL STORY: ‘EVIDENCE OF ACTUAL MALICE’

Plaintiff Zachary Young’s photo was aired by CNN during the segment in question.  (CNN/Screenshot)

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Young’s attorneys, Blake Bennett and Joe Delich, said that Warner Bros. Discovery has “not been able to complete financial discovery” related to cash flow statements and balance sheets. 

“It’s simply inconceivable that Warner Bros. Discovery is incapable of providing cashflow and balance sheet information for its wholly owned subsidiary,” Delich told Judge Lynne Parker. 

“Warner Bros. Discovery has produced some documents but has not produced any information about cashflow, or any kind of balance sheet information,” he continued. “We know that Warner Bros. Discovery has the ability to do this.”

Delich then explained that Warner Bros. Discovery prepares consolidated financial statements publicly filed with the SEC.

“In order to prepare consolidated financial statements, there must be something to consolidate,” Delich said. 

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DEFAMATION LAWSUIT AGAINST CNN COULD EXPOSE COMPANY’S FINANCIAL SECRETS AS COURT SEEKS TO EXPOSE NET WORTH

CNN host Jake Tapper and correspondent Alex Marquardt during the segment at the center of a defamation lawsuit.  (CNN/Screenshot)

Jennifer Ying, representing Warner Bro. Discovery, argued the plaintiff’s team filed a “premature motion” ahead of the subpoena return date, and the subpoena didn’t specify cash flow statements and balance sheets. Ying also said Warner Bro. Discovery has “repeatedly” explained the documents don’t exist.

“If it doesn’t exist, we can’t be compelled to produce anything,” Ying said. 

“We have told them twice now that such information does not exist,” she continued. “They have refused to accept that. We cannot create information that simply does not exist.”

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Judge William Henry, who is presiding over the case in Florida, previously ordered that CNN is obligated to “produce whatever is within its possession, custody or control” but said there is nothing in the law that would require a CNN executive to produce a sworn statement or declaration claiming the documents don’t exist. 

Judge Lynne Parker disagreed and said Young’s attorneys need to file a new subpoena specifying cash flow statements and balance sheets, and CNN’s parent company will be held accountable if the information is not promptly handed over. 

An Afghan burqa-clad woman searches for recyclable materials amid plastic waste at a garbage dump on the outskirts of Mazar-i-Sharif on September 28, 2024. (Photo by Atif Aryan / AFP) (Photo by ATIF ARYAN/AFP via Getty Images) (Photo by ATIF ARYAN/AFP via Getty Images)

“Well, CNN does not have to provide a sworn declaration, but Warner Bros. does. You’re going to subpoena Warner Brothers requesting these two specific things, and they’re either going to produce documents or they’re going to give you a sworn declaration that it does not exist,” Judge Parker said. 

“Issue the subpoena right away,” she continued. “They have 20 days from the date of issuance to respond.”  

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A civil trial is scheduled to begin on Jan. 6 in front of Judge Henry in the Circuit Court for Bay County, Florida. 

The CNN segment at the center of the suit, which was shared on social media and also repackaged for CNN’s website, began with Tapper informing viewers that CNN correspondent Alex Marquardt found “Afghans trying to get out of the country face a black market full of promises, demands of exorbitant fees, and no guarantee of safety or success.”

CNN ACCUSED OF WITHHOLDING CRITICAL DOCUMENTS NEEDED TO DETERMINE VALUE AHEAD OF DEFAMATION TRIAL

CNN host Jake Tapper. (CNN)

Tapper tossed to Marquardt, who said “desperate Afghans are being exploited” and need to pay “exorbitant, often impossible amounts” to flee the country. Marquardt then singled out Young, putting a picture of his face on the screen and saying his company was asking for $75,000 to transport a vehicle of passengers to Pakistan or $14,500 per person to end up in the United Arab Emirates.

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“Prices well beyond the reach of most Afghans,” Marquardt told viewers. 

No other people or companies were named other than Young, who alleged that CNN, using the terms “black market,” “exploit” and “exorbitant,” inaccurately painted him as a bad actor preying on desperate people. 

Internal communications between CNN employees that were revealed during the discovery process have indicated editors were concerned about the segment but aired it anyway. Other internal communications revealed CNN employees used profanities and disparaging language when privately discussing Young. 

Editor’s Note: This article’s headline was updated to make clear Warner Bros. Discovery would be compelled to hand over relevant financial information if subpoenaed by the plaintiff, or else prove they didn’t exist.

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Northeast

New York AG orders Manhattan hospital to resume gender-transition treatment for transgender youth

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New York AG orders Manhattan hospital to resume gender-transition treatment for transgender youth

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New York Attorney General Letitia James is instructing a Manhattan hospital to resume offering gender-transition treatment to transgender youth after it ended such treatments last month over funding threats from the Trump administration.

NYU Langone’s decision to close its Transgender Youth Health Program violated the state’s anti-discrimination laws by “jeopardizing access to medically necessary healthcare for some of the most vulnerable New Yorkers,” James wrote in a Feb. 25 letter first made public this week.

James’ office threatened “further action” if the hospital does not immediately resume offering hormone therapies, puberty blockers and other treatment to transgender youth.

New York Attorney General Letitia James is instructing a Manhattan hospital to resume offering gender-transition treatment to transgender young people. (Michael M. Santiago/Getty Images)

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NYU Langone, one of the city’s largest hospital systems, said last month it would stop providing certain gender-transition treatments for patients under the age of 19.

“Given the recent departure of our medical director, coupled with the current regulatory environment, we made the difficult decision to discontinue our Transgender Youth Health Program,” NYU Langone spokesman Steve Ritea said in a statement at the time. “We are committed to helping patients in our care manage this change. This does not impact our pediatric mental health care programs, which will continue.”

The hospital ceased admitting new patients into its transgender youth program last year after President Donald Trump signed an executive order entitled “Protecting Children from Chemical and Surgical Mutilation,” which aims to restrict gender-transition treatment for people under 19.

The U.S. Department of Health and Human Services has announced a proposal to cut federal Medicaid and Medicare funding to hospitals that provide these treatments to transgender young people. (Andrew Harnik/Getty Images)

Referencing Trump’s order, the U.S. Department of Health and Human Services later announced a proposal to cut federal Medicaid and Medicare funding to hospitals that provide these treatments to transgender youth.

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But the Feb. 25 letter signed by the attorney general’s health care bureau chief, Darsana Srinivasan, said the proposal did not officially change federal law and did not affect a “medical institution’s existing duties and obligations under New York law.”

“The sudden discontinuation of medically necessary transgender healthcare can have severe, negative health outcomes,” Srinivasan wrote. “Accordingly, the Attorney General is extremely concerned by your institution’s decision to cease the provision of care to this vulnerable, minority population.”

LETITIA JAMES SUES HHS OVER TYING FEDERAL FUNDS TO TRANSGENDER POLICY

NYU Langone said last month it would stop providing certain gender-transition treatments for patients under the age of 19. (Stephanie Keith/Bloomberg via Getty Images)

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The letter gives the hospital until March 11 to show its compliance, although it is unclear what steps would be taken if it fails to resume the treatments.

Several other hospitals across the country have also halted transgender youth treatments following Trump’s executive order and funding threats.

The Associated Press contributed to this report.

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Top New York hospital to end transgender program for minors

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Boston, MA

Charlotte plays Boston on 5-game win streak

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Charlotte plays Boston on 5-game win streak


Charlotte Hornets (31-31, ninth in the Eastern Conference) vs. Boston Celtics (41-20, second in the Eastern Conference)

Boston; Wednesday, 7:30 p.m. EST

BETMGM SPORTSBOOK LINE: Celtics -6.5; over/under is 214.5

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BOTTOM LINE: Charlotte is looking to keep its five-game win streak alive when the Hornets take on Boston.

The Celtics are 27-13 against Eastern Conference opponents. Boston is sixth in the NBA with 46.2 rebounds led by Nikola Vucevic averaging 8.8.

The Hornets are 19-21 in conference matchups. Charlotte is 7-8 when it turns the ball over less than its opponents and averages 15.0 turnovers per game.

The Celtics average 15.5 made 3-pointers per game this season, 2.7 more made shots on average than the 12.8 per game the Hornets allow. The Hornets average 16.0 made 3-pointers per game this season, 2.1 more made shots on average than the 13.9 per game the Celtics allow.

TOP PERFORMERS: Jaylen Brown is averaging 29 points, 7.1 rebounds and five assists for the Celtics. Payton Pritchard is averaging 17 points and 5.8 assists over the past 10 games.

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Kon Knueppel is averaging 19.2 points, 5.5 rebounds and 3.5 assists for the Hornets. Brandon Miller is averaging 22.7 points, 5.3 rebounds and 3.6 assists over the past 10 games.

LAST 10 GAMES: Celtics: 8-2, averaging 109.4 points, 50.7 rebounds, 27.1 assists, 6.1 steals and 6.4 blocks per game while shooting 45.7% from the field. Their opponents have averaged 98.5 points per game.

Hornets: 7-3, averaging 117.3 points, 47.8 rebounds, 27.4 assists, 8.5 steals and 4.2 blocks per game while shooting 45.6% from the field. Their opponents have averaged 106.2 points.

INJURIES: Celtics: Jayson Tatum: out (achilles), Neemias Queta: day to day (rest).

Hornets: Coby White: day to day (injury management).

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.



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Pittsburg, PA

2 young girls found dead in suitcases in Cleveland, police say

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2 young girls found dead in suitcases in Cleveland, police say


The bodies of two young girls were found inside suitcases in Cleveland, Ohio, police said on Tuesday. 

In a press conference, Cleveland Police Chief Dorothy Todd said on Tuesday that the bodies of the two girls were found in suitcases buried in shallow graves on Monday evening. One of the girls was believed to be between the ages of 8 and 13 years old, while the other was believed to be 10 to 14 years old. Neither girl was identified as of Tuesday night. 

“This is a priority,” Todd said during Tuesday’s press conference. “This is a traumatic event for our officers, for the community, and this is just such a tragic incident, but we are trying to develop any leads we can.”

Police said there are no active missing persons reports in Cleveland that match the two victims. 

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Officials said someone walking their dog near East 162nd Street and Midland Avenue found what appeared to be a body inside a suitcase around 6 p.m. on Monday. When officers responded to the scene near Ginn Academy, they found one of the bodies stuffed in a suitcase in a shallow grave. The second shallow grave with the body stuffed in a suitcase was found after officers searched the area.

“This is a field close to the school over there,” Todd said. “This is just a residential neighborhood that I’m sure a lot of people do frequent.”

The Cuyahoga County Medical Examiner’s Office has custody of the bodies and will identify the girls. Todd said there is no clear indication of possible causes of death for the girls or how long the girls were there.

“It was some time, so it’s not something that was recent,” Todd said. 

There is no suspect, Todd added. Anyone with information can contact the Cleveland police at 216-623-5464.

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“Usually in residential areas, you know what’s happening in your neighborhood, something just seems a little bit off,” Todd said. “That’s why we’re asking that anyone who has anything that they believe to be information directly related to or suspicious, that they give us a call.” 



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