Disney Suffers Multi-Million Dollar Legal Battle Loss Against Donald Trump

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ABC News is under fire from both Democrats and Republicans following its $15-million settlement with former President Donald Trump in a high-profile defamation lawsuit. Adding another layer to the controversy is the fact that ABC News is owned by Disney, raising questions about whether this settlement signals a tacit agreement by one of the world’s most powerful media conglomerates.

President-elect Donald Trump at a rally, with Disney World guests in attendance.
Credit: Gage Skidmore, Flickr

The Settlement and Its Fallout

Announced on Saturday, the settlement obliges ABC News to pay $15 million toward Trump’s presidential library and issue a public apology over inaccurate statements made by anchor George Stephanopoulos during a broadcast earlier this year. The network also agreed to pay $1 million in legal fees to Trump’s attorneys.

The settlement describes the $15 million as a “charitable contribution” rather than an outright payment, a distinction that has not shielded the network from fierce criticism.

The defamation lawsuit stemmed from Stephanopoulos’s claim during a March 10 segment of This Week that Trump had been “found liable for rape” in writer E. Jean Carroll’s lawsuits. Legally, no verdict involved a finding of rape under New York law.

Critics from across the political spectrum quickly condemned the network’s decision to settle, with some highlighting Disney’s role as ABC’s parent company. Conservative and liberal voices alike viewed the settlement as a capitulation to political pressure.

  • Norman Jay Ornstein, a conservative political scientist, called ABC part of the “basket of cowards in our media.”
  • Democratic attorney Marc Elias accused ABC of “kneeling” to Trump.
  • Journalist Oliver Willis went further, stating: “This is actually how democracy dies.”

Disney’s Role in the Controversy

Donald Trump wearing a black suit, white shirt, and red tie, is speaking into a microphone. His hands are raised, and his mouth is open in mid-speech. A crowd is visible in the background, along with a sign that partially reads "MAKE AMERICA," reminiscent of a scene from Captain America 4 within the MCU.
Credit: Gage Skidmore, Flickr

Disney’s ownership of ABC News complicates the narrative, especially given the company’s longstanding opposition to Trump-era policies on issues such as immigration and LGBTQ+ rights. Many observers see the settlement as a surprising move from Disney, a corporation that has previously clashed with conservative figures, including Florida Governor Ron DeSantis.

One political analyst remarked, “The optics of Disney agreeing, even indirectly, to settle with Trump may be interpreted as a sign of corporate priorities overshadowing journalistic independence.”

While Disney itself has not commented, critics have noted the potential conflicts of interest inherent in a media outlet owned by a for-profit entertainment conglomerate.

Legal and Ethical Concerns

The settlement also sparked backlash from legal experts, who criticized ABC for not allowing depositions to move forward. The agreement came just days after U.S. Magistrate Judge Lisette Reid ordered Trump and Stephanopoulos to submit to four-hour depositions.

  • Former prosecutor Joyce Vance said, “I’m old enough to remember—and to have worked on—cases where newspapers vigorously defended themselves against defamation cases instead of folding before the defendant was even deposed.”
  • Legal analyst Allison Gill added, “Why not depose him? The case wouldn’t cost more than $15M, and ABC would have won if they bothered fighting.”

Trump, Carroll, and the Defamation Context

Donald Trump speaking passionately into a microphone, reminiscent of a scene from Captain America 4. He is holding his hands up, emphasizing a point with the fervor of an MCU hero. The background is plain and out of focus.
Credit: Matt A.J., Flickr

The case centers on two prior verdicts involving writer E. Jean Carroll. In 2023, Trump was found liable for sexually abusing and defaming Carroll, resulting in a $5-million judgment. In January 2024, Trump was ordered to pay an additional $83.3 million on separate defamation claims. Trump has denied all wrongdoing and is appealing both decisions.

Judge Lewis A. Kaplan previously clarified that while the jury did not find Trump guilty of “rape” as narrowly defined under New York Penal Law, this did not preclude the term’s broader interpretation in public discourse. ABC and Stephanopoulos had attempted to use this nuance as the basis for dismissing Trump’s lawsuit, but their motion was rejected.

Broader Implications

Former President Donald Trump looks out at the crowd during a recent rally.
Credit: President Donald Trump via Instagram

The settlement is a stark reminder of the growing tensions between legacy media and political figures, especially in an era where accusations of “fake news” dominate public discourse. Critics argue that ABC’s decision, compounded by Disney’s indirect involvement, sets a dangerous precedent.

“This is the cowardice of legacy media,” said human rights lawyer Qasim Rashid. “It’s about profit, not principle.”

For many, the settlement symbolizes a broader shift in corporate media’s priorities, with some questioning whether Disney’s influence on ABC News has created a conflict between the journalistic mission and corporate interests.

As ABC News grapples with the fallout, the $15-million settlement may leave a lasting impact on its reputation—and Disney’s.

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