JUST IN: CNN Slapped With Brutal Legal News That Could Expose 'Secrets' Of Network

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The fallout from the chaotic 2021 withdrawal of American forces from Afghanistan isn't just confined to the Biden administration. A new lawsuit against CNN seeking the network's total valuation threatens to expose key financial "secrets" about the network following a story that one contractor claims smeared his business.

Zachary Young, the owner of Nemex Enterprises Inc., filed a civil claim in the circuit court of Bay County, Florida where he accuses CNN reporters of tarring his company's reputation when it published a story on its involvement in the 2021 withdrawal. Young contends that CNN implied in its reporting that his company illegally profited while helping Americans and Afghans escape violent and unstable conditions. As part of the suit, Young is demanding that CNN open the books to its finances so that Judge William Henry may fairly assess just how much of a penalty CNN should pay.

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NewsBusters associate editor Nicholas Fondacaro, who covered an initial hearing, said a handover of documents will be a pivotal moment for CNN which will be under pressure to convey honest assessments about its own valuation. "Essentially, this will act as a way to double check to see if CNN was being honest with the financial documents they were turning over as part of discovery; comparing what they turned over to Young's legal team vs what they told corporate," Fondacaro told Fox News. Puck reporter Eriq Gardner wrote that the judge's decision "sent a jolt through CNN's executives offices."

"Young has won a green light to seek punitive damages," Gardner wrote. "Accordingly, Young's attorneys will soon be receiving documents to assess CNN's net worth, so they can argue before a jury just how big a penalty Young should receive," he continued. "The judge has also ordered a deposition for Jake Tapper, who will likely have to disclose his salary and contract negotiations."

Following the ruling, Gardner noted that CNN's lawyer Charles Tobin "visibly bristled" and argued an October 11th deadline to comply "upends" his plans for the trial. Young doesn't have much sympathy for the multinational company's plight: the U.S. Navy veteran accused CNN of "destroy[ing] his reputation and business by branding him an illegal profiteer who exploited desperate Afghans" during a 2021 story on Jake Tapper's program. An interesting development from the disclosure may be Tapper's own salary and whether it was adjusted downward along with other top-shelf talent icons after several brutal ratings periods.

In his segment, Tapper said Young's company was exploiting "Afghans trying to get out of the country" who would often "face a black market full of promises, demands of exorbitant fees, and no guarantee of safety or success." He turned to CNN correspondent Alex Marquardt who singled out Young as the network put his headshot on screen, 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.

In July, CNN Chief Executive Mark Thompson announced plans to lay off at least 100 employees, mostly through a merger of the television news and digital news divisions. Just months earlier, the network reported its lowest viewership levels in decades. One of Thompson's first major moves was to propose dramatically slashing the salaries of its biggest talent. Top-earning anchors include Anderson Cooper at $20 million, Wolf Blitzer at $15 million, Jake Tapper at $8.5 million, and Chris Wallace at $8 million. Lower-level anchors including John Berman, Kate Bolduan, and Sara Sidner hold annual salaries between $1 million and $2 million. However, Thompson will have to wait until at least 2025 or even 2026 when contracts expire and he can renegotiate paychecks for his top stars.

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