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CNN has hired new lawyers as the network has failed to reach a settlement in a defamation lawsuit launched by a Navy veteran.
The plaintiff, Zachary Young, alleges 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.
According to court filings obtained by Fox News Digital, CNN has retained Dave Axelrod and Joe Bailey of law firm Ballard Spahr LLP. This came just days after settlement negotiations between Young and the network fell apart.
"More lawyers don’t change the underlying facts, which demonstrate CNN defamed Mr. Young, did so maliciously, and as a result, must face the consequences this January. It won’t change the outcome either," Young's attorney Vel Freeman told Fox News Digital.
CNN did not immediately respond to Fox News Digital's requests for comment. A representative for Ballard Spahr declined to comment.
Jake Tapper is at the center of a defamation lawsuit against CNN. (CNN/Screenshot)
Axelrod, not to be mistaken with former Obama adviser and CNN contributor David Axelrod, has been involved in other high-profile cases. He was part of The New York Times' winning legal team defeating a defamation lawsuit against former Alaska Gov. Sarah Palin. Last month, however, Palin successfully won her bid for a retrial.
He was also retained by actress Amber Heard in her appeal against the defamation verdict won by ex-husband Johnny Depp.
Plaintiff Zachary Young’s photo was aired by CNN during the segment in question. (CNN/Screenshot)
Young, a U.S. Navy veteran, believes CNN "destroyed his reputation and business by branding him an illegal profiteer who exploited desperate Afghans" during a Nov. 11, 2021, segment on CNN’s "The Lead with Jake Tapper."
The CNN segment, which was shared on social media and also repackaged for CNN's website, began with Tapper informing viewers that CNN correspondent Alex Marquardt discovered "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."
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 for $14,500 per person to end up in the United Arab Emirates.
"Prices well beyond the reach of most Afghans," Marquardt told viewers.
CNN FACES DEFAMATION SUIT OVER AFGHANISTAN WITHDRAWAL STORY: 'EVIDENCE OF ACTUAL MALICE'
"We got Young’s number and called, but he didn’t pick up. In a text message, he told CNN that ‘Afghans trying to leave are expected to have sponsors pay for them. If someone reached out, we need to understand if they have a sponsor behind them to be able to pay evacuation costs which are highly volatile and based on environmental realities,’" Marquardt continued. "Young repeatedly declined to break down the cost or say if he’s making money."
No other people or companies were named other than Young.
"In another message, that person offering those evacuations, Zachary Young, he wrote, ‘Availability is extremely limited and demand is high’… he goes on to say, ‘That’s how economics works, unfortunately,’" Marquardt told viewers.
Tapper responded, "Unfortunately, hmm," before thanking Marquardt for the report.
CNN host Jake Tapper and correspondent Alex Marquardt during the segment at the center of a defamation lawsuit. (CNN/Screenshot)
The Media Research Center’s NewsBusters exclusively obtained a filing that indicates the case is expected to go to trial in January 2025.
"The Mediator files his report to the Court and advises that a mediation conference was held on September 11, 2024, at which the parties and attorneys of record appeared in person. The Court is further advised that the parties were unable to reach any agreement and an impasse was declared," the court document published by NewsBusters stated.
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NewsBusters associate editor Nicholas Fondacaro wrote that the "amount offered to make the lawsuit go away was not disclosed," but "it would have needed to be fairly substantial to negate the allure of a possible $1 billion (possibly more) between compensatory, emotional, and punitive damages."
Earlier this month, Judge William Henry paved the way for Young to issue a subpoena for CNN to hand over sensitive financial information that the cable network presented to its parent company, Warner Bros. Discovery. The decision was essentially made so that Young and his legal team could determine the cable network’s net worth.
A civil trial is scheduled to begin on Jan. 6, 2025, in front of Judge Henry in the Circuit Court for Bay County, Florida.