ABC's $15m legal loss to Trump is just the beginning

Company settled in hours’ to protect credentials and brand

- JOE SOMMERLAD

New details have emerged about Disney's swift decision to settle Donald Trump's defamation lawsuit against ABC News for $15m last week, which saw the corporation criticised for declining to fight its corner and for potentially emboldening the presidentelect to pursue further legal actions against his media enemies.

The Republican sued ABC this spring after anchor George Stephanopoulos mistakenly said on air that the former president had been “found liable for rape” in the civil case brought against him by former magazine columnist E Jean Carroll over an incident she alleges took place in a New York City department store in 1996. In fact, Mr Trump was found liable for sexual abuse, not rape.

According to The New York Times, Disney executives realized their decision to settle would create “blowback” from other outlets but concluded its network had a “flawed” case for the defence and were wary of allowing an ugly legal battle to harm the fourth estate and damage its brand, which remains firmly associated with family entertainment.

The newspaper reports that it was a 21-page order issued by Florida federal judge Cecilia Altonaga in July rejecting Disney’s motion to dismiss the case that worried ABC’s parent company and persuaded its lawyers to act fast.