ABC News just made headlines for reasons it probably wishes it hadn’t: a $15 million settlement with President-elect Donald Trump over a defamation lawsuit tied to their star anchor, George Stephanopoulos.
While the network has extended Stephanopoulos’ contract, reportedly worth up to $18 million a year, the timing couldn’t be more awkward. The settlement and the contract renewal are said to be unrelated, but it’s hard to miss the storm swirling around Disney’s flagship news division.
The lawsuit stems from a March 2024 broadcast of This Week, where Stephanopoulos repeatedly claimed Trump had been found “liable for rape” in the E. Jean Carroll civil case. The reality? The jury’s determination was that Trump was liable for “sexual abuse,” a distinct legal term under New York law.
Trump’s legal team jumped on the discrepancy, and despite ABC’s attempts to dismiss the case, a judge ruled it would move forward—leading to a pre-trial settlement.
Under the terms of the settlement, ABC News is shelling out $15 million to fund a future presidential library or foundation in Trump’s name, plus $1 million to cover his legal fees.
Stephanopoulos and ABC News also had to issue a statement of “regret,” a humiliating public correction added as an editor’s note on the ABC News website.
The settlement reportedly blindsided Stephanopoulos, who had defiantly dismissed Trump’s lawsuit in public appearances, even joking with Stephen Colbert that he wouldn’t back down.
Now, he’s facing criticism from both inside and outside the industry. Rival networks like CNN and MSNBC are lambasting ABC for “bending the knee” to Trump, a move they see as a capitulation to political pressure.
Meanwhile, insiders at ABC have questioned how this impacts the anchor’s future. Variety reported that Stephanopoulos was unhappy with how the network handled the lawsuit, particularly the decision to settle.
For a network already dealing with behind-the-scenes drama, the timing of his contract renewal only fuels speculation about whether ABC felt pressured to keep one of its marquee names despite the controversy.