Gannett Statement Regarding Defamation Verdict
- None.
- Gannett Co., Inc. (NYSE: GCI) is facing a lawsuit in Oklahoma, with a jury finding them liable for defamation and awarding the plaintiff $25 million in damages.
Insights
The recent verdict against Gannett Co., Inc. in a defamation lawsuit raises significant legal questions regarding the standards for actual malice and the protection of journalistic practices. The notion of 'actual malice' is a stringent standard established by the U.S. Supreme Court in New York Times Co. v. Sullivan, which requires the plaintiff to prove that the defendant knew the information was false or acted with reckless disregard for the truth. The substantial punitive damages awarded, which are intended to punish the defendant and deter future misconduct, suggest the jury found Gannett's actions particularly egregious.
From a legal standpoint, the outcome of the appellate review will be crucial. Should the verdict be overturned, it could reaffirm the high bar set for defamation claims against media companies, especially in cases involving public concerns. Conversely, if the verdict is upheld, it could signal a shift towards greater accountability for publishers and potentially chill journalistic endeavors. The case is also a reminder of the importance of legal risk management for media entities, especially in an era where the line between reporting and opinion can be increasingly blurred.
The financial implications of the lawsuit for Gannett Co., Inc. are multifaceted. While the company has stated that the damages, if upheld, would be covered by insurance and are not expected to materially impact its financials or liquidity, investors should be aware of the potential indirect consequences. These could include increased insurance premiums, a possible need to reevaluate internal editorial and fact-checking processes and the reputational damage that could affect advertiser relationships and readership trust.
It is also worth noting that the size of the punitive damages, four times the actual damages, is relatively rare and could reflect a trend towards larger awards in defamation cases. This could have broader implications for the media industry, potentially leading to more conservative reporting practices. Gannett's forthcoming appeal will be closely watched by investors as it holds the potential to influence not only Gannett's financial health but also that of its peers in the media sector.
From an insurance perspective, the Gannett case underscores the importance of media liability coverage, which is designed to protect organizations from the financial consequences of defamation, libel and similar claims. The fact that Gannett's potential damages are expected to be covered by insurance demonstrates the value such policies provide in mitigating risk. However, a payout of this magnitude could lead to a reassessment of risk profiles for media companies by insurers, potentially resulting in higher premiums or more restrictive coverage terms for the industry as a whole.
The case also highlights the role of punitive damages in insurance coverage. Typically, punitive damages are not insurable in many jurisdictions because they are intended to punish the wrongdoer. If Gannett's insurance does cover the punitive award, it would be an exception rather than the norm. The outcome of this case could therefore have implications for how insurers approach the underwriting of media liability policies and the structuring of their coverage limits.
Following a trial, a jury returned a verdict finding Gannett liable for defamation and awarded plaintiff actual damages of
Gannett is disappointed with the verdict as no credible evidence was presented to the jury that The Oklahoman acted with any awareness that what was reported was false or with any intention to harm the plaintiff in this case. Gannett believes that the jury verdict was a result of errors in the way the Court administered the case and a flawed trial process.
Gannett intends to seek appellate review of the case.
The amount of damages awarded, if any, would be covered by insurance and Gannett does not expect a material impact to its financials or liquidity.
ABOUT GANNETT
Gannett Co., Inc. (NYSE: GCI) is a subscription-led and digitally-focused media and marketing solutions company committed to empowering communities to thrive. With an unmatched reach at the national and local level, Gannett touches the lives of millions with our Pulitzer Prize-winning content, consumer experiences and benefits, and advertiser products and services. Our current portfolio of media assets includes The
Cautionary Statement Regarding Forward-Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our business outlook, digital revenue performance, our ability to develop and implement quality assurance programs for our product releases and our ability to identify and remediate problems in connection with such product releases. Words such as "expect(s)", "plan(s)", "believes(s)", "will", "target", "outlook" and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in the Company’s most recent Annual Report on Form 10- K, our quarterly reports on Form 10-Q, and our other filings with the
Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Except to the extent required by law, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207984763/en/
MEDIA CONTACT
Lark-Marie Anton
Senior Vice President, Communications
(646) 906-4087
lark@gannett.com
INVESTOR RELATIONS
Trisha Gosser
Senior Vice President, Investor Relations
(703) 854-6708
tgosser@gannett.com
Source: Gannett Co., Inc.
FAQ
What is the ticker symbol for Gannett Co., Inc.?
What is the lawsuit against Gannett Co., Inc. in Oklahoma about?
How does Gannett Co., Inc. plan to address the verdict?
Will the damages awarded have a material impact on Gannett Co., Inc.'s financials or liquidity?
