Trump Media’s Suit Can Proceed Against Wash. Post Over “Trust Linked to Porn-Friendly Bank Could Gain a Stake in Trump’s Truth Social” Story
From Judge Tom Barber (M.D. Fla.) in Trump Media & Tech. Group Corp. v. WP Company LLC:
This lawsuit for defamation by Plaintiff Trump Media & Technology Group Corp. (“TMTG”) against Defendant WP Company LLC (the “Post”) arises from an article titled “Trust linked to porn-friendly bank could gain a stake in Trump’s Truth Social,” published by the Post on May 13, 2023 …. The second amended complaint narrows TMTG’s defamation claim to two statements from the Post’s article relating to a purported finder’s fee paid to Entoro Securities to secure an $8 million loan. Those statements are:
- “The companies also have not disclosed to shareholders or the SEC that Trump Media paid a $240,000 finder’s fee for helping to arrange the $8 million loan deal with ES Family Trust”; and
- “The recipient of that fee was an outside brokerage associated with Patrick Orlando, then Digital World’s CEO”
TMTG alleges these statements were false and were made with actual malice, that is, with knowledge they were false or with reckless disregard as to whether they were false….
The Post’s article purported to be based on sources that included internal documents shared with the Post by former TMTG officer Will Wilkerson. The article did not point to any witness statement or written confirmation that TMTG made the finder’s fee payment, but it did refer to an invoice from Entoro and a referral fee agreement calling for the payment.
The existence of such an agreement would tend to negate actual malice on the part of the Post in stating that the fee was paid. Absent specific evidence to the contrary, the Post might reasonably have believed that TMTG paid the fee because it had agreed to do so. The Court’s prior dismissal orders emphasized that TMTG had not challenged the truth of the article’s statements regarding the fee agreement, but gave TMTG leave to amend to allege that no agreement existed if it could do so in good faith.
TMTG’s second amended complaint now squarely alleges that no fee agreement existed and that the Post’s statements in the article about such a document were therefore false. TMTG further alleges, “[s]imply put, [the Post] reviewed the internal d
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