Navy veteran suing Associated Press over Afghanistan story says 'smuggling' language implied criminal conduct
"Smuggling" could be the new "black market" in Bay County, Florida, if U.S. Navy veteran Zachary Young's defamation lawsuit against the Associated Press goes to trial.
Young, who successfully sued CNN for defamation earlier this year, alleged that CNN smeared him by implying he illegally profited when helping people flee Afghanistan on the "black market" during the Biden administration's military withdrawal from the country in 2021. Throughout the CNN trial, Young's legal team pointed out the term "black market" is typically used to describe illegal behavior.
When covering the trial in January, AP media reporter David Bauder wrote that "Young's business helped smuggle people out of Afghanistan." Young is now seeking punitive damages in a defamation lawsuit against the AP for "an article that went even further than CNN's falsehoods," and on Saturday updated the complaint to include 40 Associated Press articles that use the term "smuggling" to describe criminal conduct.
Young's counsel, Daniel Lustig from Pike & Lustig, submitted examples of the AP using the terms "smuggling," "smugglers" and "smuggle" when referring to illegal behavior, often related to deadly human trafficking.
The lawsuit, which alleges the "AP blatantly accused Mr. Young of engaging in criminal human smuggling," claims that the AP has used the term "smuggling" in dozens of prior articles to "describe plainly criminal conduct such as human trafficking, drug operations, and transnational crime."
AP headlines submitted include "UK leader tells Interpol meeting world must 'wake up' to threat from people-smugglers," "Panama arrests 15 people for smuggling Chinese migrants through the Darien Gap," "Florida man at center of fatal human smuggling case pleads not guilty in Minnesota," "US government indicts Guatemalan suspect on smuggling charges over deaths of 53 migrants in trailer," and many more.
Young is seeking the same venue for his lawsuit against the AP as he had with CNN: Bay County, Florida. The court previously found that Young did nothing illegal.
The AP, which has stood by its reporting since Young's lawsuit was filed, did not immediately respond to a request for comment on examples provided by Lustig.
Lustig said the CNN trial was proof that news organizations shouldn't automatically receive the benefit of the doubt.
"The CNN trial showed us exactly how media companies operate under pressure – and how far they'll go to avoid responsibility when they know they've published something false. That harm is even more serious when the target is a veteran who served this country honorably. We're not intimidated by the Associated Press," Lustig told Fox News Digital.
"We trust a Bay County jury to look at the facts," Lustig continued. "Just like they did before."
Young believes the AP acted with actual malice and is seeking "damages in excess of $50,000.00, exclusive of interest, costs and attorneys' fees," along with punitive damages.
Last week, U.S. News & World Report retracted its republished version of the AP report, but the AP continued to stand by its reporting.
"AP's story was a factual and accurate report on the jury verdict finding in Zachary Young's favor. We will vigorously defend our reporting against this frivolous lawsuit," an AP spokesperson told Fox News Digital.
Young's team has continued to amp up pressure on the AP, filing another amendment on Monday to include the news organization referring to the lawsuit as "frivolous" to media outlets.
The AP did not immediately respond to a request for comment.
In January, a six-person jury decided Young was owed $4 million in lost earnings, $1 million in personal damages such as pain and suffering and said that punitive damages were warranted against CNN. A settlement was reached before punitive damages were decided by the jury.
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This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. 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Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Treasury Secretary Scott Bessent told House lawmakers on Wednesday that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations. When asked if Americans should prepare for another "Liberation Day" on July 9, when the tariff pause ends for most countries, Bessent said that the administration may choose to move the deadline on 18 of the most important trading partners, so long as they make an effort to come to the negotiating table. "We are working toward deals on those, and it is highly likely that [for] those countries — or trading blocs, in the case of the EU — who are negotiating in good faith, we will roll the day forward to continue good faith negotiations," Bessent said (see video below). "If someone is not negotiating, then we will not." A recent report on the drastic decline of US ocean imports serves as an example of how President Trump's increased tariffs on China affected supply chains and several industries as ttalks continue. Reuters reports: Read more here. The Treasury Department says that the US government is successfully using tariffs to decrease the budget deficit by more than $30 billion, largely due to increased customs receipts. Reuters reports: Read more here. China will ease curbs on exports of rare earth minerals for six months as part of a new trade understanding with the US, according to The Wall Street Journal. The move could add more uncertainty for American manufacturers, particularly the auto industry, which has been pushing for easier access. The Journal notes that the move gives China leverage down the line if tensions ratchet back up. From the report: In celebrating the agreement early Wednesday, President Trump noted "any necessary rare earths will be supplied, up front, by China." He did not mention any time limit on loosening those restrictions. Treasury Secretary Scott Bessent, in testimony before Congress on Wednesday, painted Wednesday's agreement as an incremental step on the longer road to a more comprehensive trade deal. "A trade deal today or last night was for a specific goal, and it will be a much longer process," he told a House committee. When asked if current US tariff levels on Chinese imports would not change again, Commerce Secretary Howard Lutnick told CNBC, "You can definitely say that." "We're in a great place with China," Lutnick said Wednesday. While the US-China truce framework is awaiting final word from US President Trump and Chinese President Xi Jinping, Lutnick added, "Both sides are really positive." The agreement is largely viewed as reestablishing the "handshake" that US and Chinese officials reached in Geneva last month, as details on a larger trade pact remain scant. Trump posted on social media this morning that the US has imposed 55% tariffs on China, a number that does not include any new tariffs but instead comprises some preexisting tariffs, Trump's fentanyl tariffs, and 10% "Liberation Day" tariffs. Lutnick touted that, as a result of the two-day talks, the US will gain access to rare earths and magnets, while the Chinese delegation sought to remove the US's export controls. He added that the trade deficit remains an ongoing issue, stating, "We're going to examine how China can do more business with us." May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Sign in to access your portfolio
San Francisco Chronicle
28 minutes ago
- San Francisco Chronicle
Iowa governor rejects GOP bill to increase regulations of Summit's carbon dioxide pipeline
DES MOINES, Iowa (AP) — Iowa Gov. Kim Reynolds on Wednesday rejected a bill that could have introduced more complications for a massive carbon-capture pipeline project routed across several Midwestern states, issuing a rare veto in the Republican-controlled statehouse. The legislation was designed by Iowa House Republicans to increase regulations of Summit Carbon Solutions' estimated $8.9 billion, 2,500-mile (4,023-kilometer) project that cuts across Iowa and already has an approved permit in the state. But the bill provoked loud opposition from members of Iowa's powerful ethanol industry, which argued the project is essential for Iowa's agricultural dominance, for farmers and for construction jobs. And it exposed a rift within the party over how to protect property rights. 'While I shared the bill's goal of protecting landowners, good policy should draw clear, careful lines. This bill doesn't,' said Reynolds, a Republican, in the explanation of her veto. 'It combines valid concerns with vague legal standards and sweeping mandates that reach far beyond their intended targets.' Despite her veto, Reynolds said she was 'committed to working with the legislature to strengthen landowner protections, modernize permitting, and respect private property.' Iowa state Rep. Bobby Kaufmann, a Republican who supported the bill in the House, said Wednesday that her commitment is too little, too late. 'If she was willing to work with us on this, where in the world has she been the last three years?' Kaufmann said. 'She is clearly not siding with the constitutional rights of landowners but rather she's siding with special interests.' Summit has said it has invested nearly $175 million to enter into voluntary agreements with landowners in Iowa and more than $1 billion on the project overall. In a statement, Summit thanked the governor for a thoughtful review of the bill and said their goal is to proceed with voluntary agreements with landowners. Even with the relief from Reynolds' veto, Summit will likely have to readjust plans after South Dakota's governor signed a ban on the use of eminent domain — the government seizure of private property with compensation — to acquire land for carbon dioxide pipelines. Summit's permit application was also rejected in South Dakota. The project has permit approvals in Iowa, Minnesota and North Dakota but faces various court challenges. The Iowa bill would have prohibited the renewal of permits for a carbon dioxide pipeline, limited the use of such a pipeline to 25 years and significantly increased the insurance coverage requirements for the pipeline company. Those provisions would likely have made it less financially feasible for a company to build a carbon dioxide pipeline. 'We look forward to continued discussions with state leaders as we advance this important project,' Summit said Wednesday. 'At a time when farmers are facing increasing pressures, this project opens the door to new markets and helps strengthen America's energy dominance for the long term.' Rift in Republican-controlled statehouse Republican House Speaker Pat Grassley said after Reynolds' veto that he would pursue a special session to vote on an override, saying in a statement that the veto 'is a major setback for Iowa.' The Iowa Constitution states that a request for special session from two-thirds of both chambers, or the governor, can bring lawmakers back to Des Moines. Two-thirds of both chambers would need to vote for an override for the bill to become law without the governor's approval. 'We will not stop fighting and stand firm on our commitment until landowners' in Iowa are protected against Eminent Domain for private gain,' Grassley said. Senate Majority Leader Jack Whitver suggested that would be unlikely in his chamber. Thirteen Republican senators had joined with 14 Democrats in voting in favor of the bill, but 21 Republicans and one Democrat voted against it. 'Based on the votes on that bill in the Iowa Senate, a significant majority of our caucus supports a better policy to protect landowner rights. I expect that majority of our caucus would not be interested in any attempt to override her veto,' he said. As the legislative session wound down, a dozen Republican senators insisted their leaders bring the House-approved bill to the floor for a vote after several years of inaction. The stalemate ended in a long and divisive debate among the Iowa Senate's Republican supermajority, with senators openly criticizing one another and exposing the closed-door discussions that got them there. Summit's project and its critics The Summit pipeline was proposed to carry carbon emissions from ethanol plants in Iowa, Minnesota, Nebraska, North Dakota and South Dakota to be stored underground permanently in North Dakota. By lowering carbon emissions from the plants, the pipeline would lower their carbon intensity scores and make them more competitive in the renewable fuels market. The project would also allow ethanol producers and Summit to tap into federal tax credits. The pipeline's many critics have for years begged lawmakers for action. They accuse Summit of stepping on their property rights and downplaying the safety risks of building the pipeline alongside family homes, near schools and across ranches. Lee Enterprises and The Associated Press reviewed hundreds of cases that reveal the great legal lengths the company went to to get the project built. In South Dakota, in particular, a slew of eminent domain legal actions to obtain land sparked a groundswell of opposition that was closely watched by lawmakers in Iowa as well. A group of landowners released a statement Wednesday calling the veto a slap in the face. 'Big money, greed & self interest won the day,' said Jan Norris, a landowner in southwest Iowa whose neighbor is in the pipeline's route. 'Our property rights are for sale to the highest bidder.'
