The fallout at ABC News following its $16 million settlement with Donald Trump over defamation claims has sparked a media firestorm, leaving anchor George Stephanopoulos “apoplectic” and insiders fuming.
The settlement, which included a $15 million payment to Trump’s presidential foundation and $1 million for legal fees, has been described as a significant embarrassment for the network. For Stephanopoulos, a veteran journalist with deep ties to the Democratic establishment, the ordeal has been nothing short of humiliating.
The lawsuit stemmed from a March interview in which Stephanopoulos inaccurately stated that Trump had been “found liable for rape” in the E. Jean Carroll civil case. While a Manhattan jury did hold Trump liable for sexual abuse and defamation, it stopped short of finding him liable for rape under New York’s legal definition. Trump seized on this distinction, arguing the misstatement was defamatory and maliciously intended to damage his reputation.
Faced with the prospect of a high-profile legal battle and damaging disclosures during discovery, Disney—ABC’s parent company—pushed for a quick settlement. According to insiders, Disney CEO Bob Iger personally greenlit the deal, prioritizing corporate risk management over journalistic pride.
The decision was likely influenced by Trump’s imminent return to the White House, as well as Disney’s broader strategic concerns, including its tumultuous relationship with the Republican Party.
Stephanopoulos was reportedly blindsided by the settlement and the requirement that he issue a public apology. His frustration with the network boiled over, culminating in the deactivation of his X account, severing ties with over 2.3 million followers. Staff morale at ABC News has also taken a hit, with employees expressing outrage over both the settlement and the network’s lack of internal communication amid ongoing layoffs.
The saga is a stark reminder of the precarious position traditional media finds itself in when facing high-stakes litigation. Critics have pounced on the incident, accusing ABC News of sacrificing journalistic principles for corporate expedience.
Some have even speculated that the settlement signals a broader attempt by Disney to curry favor with the incoming Trump administration, especially in light of recent meetings between Disney executives and Trump’s inner circle.
Meanwhile, Trump’s legal campaign against major media outlets shows no signs of slowing down. The former president is pursuing a $10 billion lawsuit against CBS News, alleging “malicious” and “deceptive” conduct during an October interview with Vice President Kamala Harris. Trump’s team claims CBS misrepresented the vice president’s performance to shield Democrats from scrutiny, further intensifying the battle between Trump and the mainstream media.
