Trump Media Abandons Legal Action Against The Guardian Over Controversial Financial Report
Donald Trump's media corporation has abruptly withdrawn its defamation lawsuit against The Guardian and two additional defendants concerning a report that federal prosecutors were examining $8 million in payments received by the company. The payments, which originated from entities with connections to Russian President Vladimir Putin, were under investigation as potential money laundering operations.
Legal Proceedings and Sudden Withdrawal
A filing submitted on Friday in the 12th judicial circuit in Sarasota County, Florida, confirmed that Trump Media and Technology Group (TMTG) was dismissing its claims without prejudice. This legal maneuver allows the company to potentially refile the lawsuit at a future date. The Guardian's original report in March 2023 detailed how New York prosecutors had initiated a criminal inquiry into money wired to TMTG through Caribbean channels.
The investigation focused on two entities that appeared to be partially controlled by a relation of a Putin ally. At the time of the report, TMTG was preparing to merge with the shell company Digital World Acquisition Corp. (DWAC) to achieve a market capitalization of $1.3 billion. The company filed a libel lawsuit asserting that statements in The Guardian's article were both false and defamatory.
Judicial Rulings and Legal Strategy
In November, Judge Hunter W. Carroll, an appointee of Trump ally and former Florida Governor Rick Scott, dismissed the case against Guardian News and Media Ltd., Penske Media Corporation (owner of Variety), and former TMTG founder turned whistleblower Will Wilkerson. Carroll's ruling emphasized that the plaintiffs had failed to demonstrate actual malice in the defendants' reporting. However, he permitted Trump's group to file an amended complaint, which they submitted in January.
A hearing scheduled for Tuesday was canceled following TMTG's decision to withdraw entirely from the legal action. The notice of dismissal provided no explanation for this sudden reversal. The Guardian has reached out to TMTG for comment regarding this latest development.
Company Statements and Ongoing Disputes
In April 2024, three months before the initial complaint was filed, a lawyer representing Trump sent The Guardian a statement declaring the outlet's reporting as "false." The statement asserted, "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."
A spokesperson for Guardian News and Media responded, "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."
Broader Legal Context and Media Battles
TMTG's voluntary dismissal represents a rare retreat by the Trump camp amid an increasingly aggressive legal strategy against media organizations during his second presidency. Trump has secured significant victories and extracted substantial financial settlements in several high-profile cases, including those against major US television networks ABC and CBS.
Currently, Trump is pursuing a $15 billion lawsuit against The New York Times, alleging that the publication damaged his reputation as a successful businessman. Additionally, he has an active $10 billion lawsuit against the BBC, claiming the network edited part of his speech from a 2021 rally for inclusion in a documentary. The BBC has labeled that lawsuit "groundless" and warned it could have a chilling effect on media reporting globally.
Financial Background and Investigative Details
The case against The Guardian centered on two emergency loan payments made to TMTG in December 2021 and February 2022. These payments occurred when the company faced imminent 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 examined by The Guardian identified Paxum Bank, an institution registered in Dominica, as a conduit for the initial $2 million payment. The Guardian also identified the ES Family Trust, whose trustee Angel Pacheco appeared to have simultaneously served as a Paxum Bank director, in a subsequent $6 million payment.
The criminal investigation by federal prosecutors from the southern district of New York examined Paxum Bank and its partial ownership by Anton Postolnikov, who appeared to be a relation of Putin ally Aleksandr Smirnov. There remains no suggestion that TMTG or its executives were aware of the loans' nature or origin beyond their opaque characteristics, and neither has been accused of any wrongdoing.
