Kevin O'Leary and Fox News sued by data center opponents over claims linking them to China
Data center opponents in Utah have filed a federal defamation lawsuit against Kevin O'Leary, who is behind the Strata data center in Box Elder County, and Fox News. The lawsuit alleges that O'Leary and Fox News defamed them by claiming their opposition to the data center was funded by the Chinese Communist Party, causing damage to their reputations and businesses. This action comes despite O'Leary and Fox News having issued retractions.
Several Utahns have filed a federal defamation lawsuit against businessman Kevin O'Leary, the figure behind the Strata data center in Box Elder County, and Fox News. The plaintiffs, including groups like Alliance for a Better Utah and Elevate Strategies, along with their founders Josh Kanter and Gabby Finlayson, allege that O'Leary and Fox News defamed them by falsely claiming their opposition to the data center was financed by the Chinese Communist Party.
According to the lawsuit, O'Leary made these accusations in May, suggesting that adversaries like China sought to impede U.S. electrical grid and AI compute capacity development. He claimed to have data from IP address investigations showing misinformation spikes from groups like the Party for Socialism and Liberation, and specifically named the Utah-based organizations and individuals, questioning their funding sources. This lawsuit was filed despite O'Leary and Fox News having issued retractions and apologies a few weeks prior, with Fox News Media stating it had no evidence to support the claims of Chinese funding.
The 70-page lawsuit seeks punitive damages for the alleged misconduct and harm to their reputations and businesses, with an amount greater than $75,000. While the defendants, O'Leary and Fox News, have expressed eagerness to file their answer and counterclaim, legal experts note that defamation requires proof of malice or reckless disregard for the truth. The case raises questions about First Amendment protections, particularly for Fox News in providing a platform for O'Leary's statements.