Trump Media Company Abandons Legal Action Against the Guardian
Donald Trump's media corporation has formally dropped a defamation lawsuit against the Guardian and two other defendants. The case centered on a report that federal prosecutors were examining $8m in payments received by the company from entities with connections to Vladimir Putin as potential money laundering.
Details of the Withdrawal and Legal Background
A filing in the 12th judicial circuit in Sarasota County, Florida, on Friday confirmed that Trump Media and Technology Group (TMTG), the parent company of the Truth Social platform, was withdrawing its claims without prejudice. This means the lawsuit could be refiled at a later date if desired.
The Guardian originally reported in March 2023 that New York prosecutors had launched a criminal inquiry into money wired to TMTG through the Caribbean. The funds came from two entities that appeared to be partially controlled by a relation of an ally of Russia's president, Vladimir Putin.
At the time, TMTG was preparing to merge with the shell company Digital World (DWAC) to achieve a $1.3bn market capitalization. The company was sensitive to allegations it received loans from a potentially unsavory source and filed a lawsuit claiming the Guardian had acted with bias or ill-will.
Court Rulings and Subsequent Developments
In November, the judge hearing the case, Hunter W Carroll, dismissed most of the claims against Guardian News and Media Ltd, Penske Media Corporation (owner of Variety, which also reported the story), and Will Wilkerson, a former TMTG founder turned whistleblower.
Judge Carroll, an appointee of Republican former Florida governor and Trump ally Rick Scott, ruled that the plaintiffs had failed to prove the defendants showed actual malice in their reporting. However, he allowed Trump's group to file an amended complaint, which they did in January.
A hearing had been scheduled for Tuesday, according to court records, before TMTG decided to withdraw entirely from the legal action. The notice of dismissal provided no reason for this abrupt climbdown.
Statements from Both Sides and Broader Legal Context
A lawyer representing Trump sent a statement to the Guardian in April 2024, three months before the initial complaint was filed, asserting that the outlet's reporting was "false." The statement claimed, "The Guardian continues to propagate its false narrative that TMTG has these fake connections to Russia. It is a hoax. Litigation will continue on this point, and we are confident that the Guardian will ultimately be held responsible for its defamation – and this story should be retracted."
There remains no suggestion that TMTG or its executives knew of the nature or origin of the loans beyond their opacity, and they have not been accused of any wrongdoing.
In response, a spokesperson for Guardian News and Media (GNM) said, "We enthusiastically welcome Trump Media's voluntary dismissal of its suit against the Guardian, which is long overdue. From the outset, the Guardian's reporting was built on careful fact-checking, credible sources, and thorough documentation, and Trump Media's claims always lacked merit – both the first and second times they were filed."
TMTG's voluntary dismissal marks a rare capitulation by Trump in an increasingly aggressive legal strategy against media companies during his second presidency. He has secured significant victories and extracted substantial financial settlements in several high-profile cases, including against US television networks ABC and CBS.
Trump is currently suing the New York Times for $15bn in a refiled complaint after it reported an unfavorable opinion poll. He also has an active $10bn lawsuit against the BBC over allegations it edited part of his speech from a 2021 rally for inclusion in a documentary. The BBC has called that lawsuit "groundless" and warned it could have a chilling effect on media reporting globally.
Background on the Payments and Investigations
Trump's case against the Guardian was based on its reporting of two emergency loan payments made to TMTG in December 2021 and February 2022. These came when the company was on the verge of financial collapse after its planned merger with DWAC was delayed by investigations from the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
Wire transfer receipts reviewed by the Guardian identified Paxum Bank, an institution registered in Dominica, as a conduit in a first, $2m payment. The Guardian also identified the ES Family Trust, whose trustee Angel Pacheco appeared to have been simultaneously a Paxum Bank director, in a later, $6m payment.
The criminal investigation by federal prosecutors of the southern district of New York looked into Paxum Bank and its part ownership by an individual named Anton Postolnikov, who appeared to be a relation of the Putin ally Aleksandr Smirnov.
