Trump media company drops lawsuit against the Guardian | Donald Trump

Donald Trump’s media company has dropped its defamation suit against the Guardian and two other defendants following a report that federal prosecutors were investigating $8 million in payments the company received from entities linked to Vladimir Putin on suspicion of money laundering.

A filing with the 12th Judicial Circuit in Sarasota County, Florida, confirmed Friday that Trump Media and Technology Group (TMTG), the parent company of the presidential platform Truth Social, is withdrawing its claims without prejudice, meaning it could file a new complaint at a later date.

The Guardian reported in March 2023 that New York prosecutors had opened a criminal investigation into money transferred to TMTG via the Caribbean by two entities that appeared to be controlled in part by someone close to Putin, the Russian president.

The Trump media group, which was at the time preparing to merge with shell company Digital World (DWAC) to launch at a $1.3 billion market cap, was sensitive to allegations that it had received loans from a potentially unsavory source – and it filed a defamation suit, claiming that the statements in the Guardian article were false and defamatory.

In November, the judge in the case, Hunter W Carroll, dismissed the case against Guardian News and Media Ltd; Penske Media Corporation, owner of Variety, which also reported the story; and Will Wilkerson, a former TMTG founder turned whistleblower.

Carroll is nominated by a Trump ally Rick Scott, the former Republican governor of Florida. His ruling said the plaintiffs failed to prove that the defendants engaged in actual malice in their reporting, but it allowed Trump’s group to file an amended complaint, which they did in January.

A hearing in that case had been set for Tuesday, according to the court docket, before TMTG’s decision to withdraw from the lawsuit entirely.

The dismissal notice gave no reason for this sudden drop. The Guardian has contacted TMTG for comment on the latest developments.

A lawyer representing Trump sent the Guardian a statement in April 2024 – three months before the first complaint was filed – claiming the outlet’s reporting was “false.”

“The Guardian continues to spread its false narrative that TMTG has false links to Russia,” he said. “This is a hoax. Litigation will continue on this point, and we are confident that the Guardian will ultimately be held accountable for its defamation – and this story should be retracted.”

There is no indication that the company knew the nature or origin of the loans, beyond the fact that they were opaque. Neither TMTG nor its executives have been accused of wrongdoing.

In a statement, a spokesperson for Guardian News and Media (GNM) said: “We enthusiastically welcome Trump Media’s voluntary dismissal of its long overdue lawsuit against the Guardian.

“From the beginning, the Guardian’s reporting was based on careful fact-checking, credible sources and extensive documentation, and Trump Media’s claims have always lacked merit – both the first and second times they were made. »

TMTG’s voluntary dismissal marks a rare capitulation from the Trump camp in an increasingly aggressive legal strategy against media companies during his second presidency.

He has won significant victories and secured large financial settlements in several high-profile cases, including against US television networks ABC and CBS.

Trump is currently suing The New York Times for $15 billion in a new complaint, claiming the publication damaged his reputation as a successful businessman. And he also has an active $10 billion lawsuit against the BBC over an allegation that it edited part of his speech at a 2021 rally for inclusion in a documentary.

The BBC called the trial “baseless” and said it would have a chilling effect on the media’s ability to cover important and powerful figures globally.

Trump’s case against the Guardian was based on its report on two emergency loan repayments made to TMTG in December 2021 and February 2022, when the company was on the brink of financial collapse after its proposed merger with DWAC was delayed by investigations by the Securities and Exchange Commission and the Financial Industry Regulatory Authority.

Bank transfer receipts reviewed by the Guardian identified Paxum Bank, an institution registered in Dominica, as the intermediary in an initial payment of $2 million. The Guardian also identified the ES Family Trust, whose trustee Angel Pacheco appeared to have concurrently been a director of Paxum Bank, in a subsequent $6 million payment.

The criminal investigation by federal prosecutors in the Southern District of New York focused on Paxum Bank and its ownership in part by an individual named Anton Postolnikov, who appears to be close to Putin ally Alexander Smirnov.