The verdict came Friday; here's the backstory, from a decision in March in Fox v. Nexstar Media Group, Inc. by Judge Robert Jonker (W.D. Mich.), allowing plaintiffs' claims to go forward:
These cases arise from the fallout over an internal memo that two senior news managers at WOOD‑TV—Amy Fox and Stanton Tang—either wrote or approved regarding coverage of Pride-month events. According to Fox and Tang, management initially agreed that the memo merely restated corporate policy, but after some colleagues misinterpreted the memo as being anti‑gay—and after the memo was leaked externally—management allegedly shifted its stance and planted news stories that portrayed Fox and Tang as anti‑gay. The plaintiffs contend Nexstar did this to cause Fox and Tang to absorb the blame for the controversy while allowing the company to emerge unscathed.
In early June of 2023, Stanton Tang began to feel concerned about WOOD-TV's coverage of Pride-related events. To him, it seemed that the newsroom's approach to Pride coverage differed from its approach to coverage of other events, such as women's history month or black history month.
As Tang tells it, when it came to the latter events, the newsroom tried to approach coverage in a unified way, to ensure that coverage was diversified, newsworthy, and spread throughout the month. However, when it came to Pride events, the newsroom was deviating from its typical editorial review process, and many reporters were beginning to go cover stories about Pride festivals as soon as they heard that the event was taking place—without discussing with the rest of the newsroom whether the story ought to be covered, whether it was duplicative of another story that had recently aired, or whether some unique aspect of the story could be explored in a way that highlighted the story's overall newsworthiness. Tang was also worried that the volume of Pride stories being covered by WOOD-TV news staff was alienating some of the station's more conservative viewers.
On the morning of June 13, 2023, Tang shared his concerns with his Assistant News Director, Amy Fox. He explained that he wanted to ensure that any Pride‑related reporting included appropriate historical context and that the newsroom was approaching the topic consistently. To address these concerns, he asked Fox to draft an email to the newsroom. Fox did so and then shared her proposed email with Tang. Tang added a few more lines to the email—including a directive for reporters to "get both sides of the issue" when covering Pride events—and told Fox to send the memo to all staff, which she did….
Many coworkers opposed the memo, and some leaked it to outside media outlets, which reached out to Nexstar for comment. Fox and Tang were eventually fired, and Nexstar released two statements that were then quoted by other media outlets:
[1.] Diversity, equity, and inclusion are among Nexstar's core values. Our local TV stations are expected to cover and report the news of the day in an expansive and inclusive fashion, consistent with these values. We're looking into the situation at WOOD-TV, as the communication regarding the station's coverage of PRIDE month activities in the area is not consistent with Nexstar's values, the way we cover the news, or the respect we have for our viewers. We will take appropriate action as necessary to address this situation, and apologize for offending members of the LGBTQ community and WOOD-TV's viewers….
[2.] We can confirm that WOOD-TV made changes to its newsroom leadership team to ensure its ability to continue providing outstanding local news coverage and service to the Grand Rapids community and surrounding area. As these are internal personnel decisions involving matters of personal privacy, we will decline further comment.
"Nexstar's communications director, Gary Weitman" also responded to media queries by saying, in response to a query about whether the firings were "a result of the investigation into the memo," "I think that's a fair assumption … but again not attributable."
The court concluded that Tang and Fox had adequately alleged that statements about them were untrue:
Nexstar's theory seems to be that the only potentially untrue statement that the plaintiffs can point to is Nexstar's statement that "the communication regarding the station's coverage of PRIDE month activities in the area is not consistent with Nexstar's values, the way we cover the news, or the respect we have for our viewers." However, according to Nexstar, there is no question about the truthfulness of this statement because Nexstar's corporate leadership team is the only group of people that can define what Nexstar's values are and because that leadership team has concluded that the memo was not in line with those values….
There are two problems with this theory. First, the record contains evidence from which a reasonable jury could conclude that some members of Nexstar's leadership team did believe the memo aligned with Nexstar's values. Most significantly, Julie Brinks—the plaintiffs' direct manager—indicated numerous times that she believed the memo was in line with Nexstar's journalistic standards, that it did not discriminate against anyone, and that it was being misinterpreted by some members of the news staff. Because Julie Brinks was the person responsible for conveying to the plaintiffs how WOOD-TV was supposed to report the news, a reasonable jury could find her beliefs about the memo and about Nexstar's values and policies especially relevant concerning the question of the statement's truthfulness.
More importantly, though, Nexstar's argument is also flawed because Nexstar fails to recognize that, under Michigan law, a literally true statement can still be actionable. Often, two true statements can be juxtaposed in such a way that they imply an idea that is false, which, under Michigan law, gives rise to a cause of action for defamation. See, e.g., Reighard v. ESPN, Inc. (Mich. App. 2022). Reighard offers a good example of how this type of defamation—often referred to as "defamation by implication"—typically occurs.
The plaintiff in Reighard was the head coach of the women's gymnastics team at Central Michigan University. On February 20, 2019, the university announced that Reighard had been placed on leave and that an investigation was under way. The university did not provide any details about the investigation or the reason for Reighard's leave. Still, an ESPN reporter who had previously authored a book about the Larry Nassar sex-abuse scandal tweeted about the university's announcement in a two-part twitter post. The reporter's first tweet read:
Michigan's attorney general announced today her office is taking over an investigation of John Geddert, the 2012 Olympic team head coach and close friend of Larry Nassar. Several gymnasts have publicly abused [sic] Geddert of physically and mentally harming them.
And his second tweet read:
On the same day as the AG's announcement, Central Michigan said it was putting longtime gymnastics coach Jerry Reighard on leave amid an internal review. No details of the review were shared, but Reighard has a long personal and professional relationship with Geddert.
Read together, the obvious message implied by the tweets is that Reighard was placed on leave in connection with the Nassar scandal. Because every statement contained in each tweet was literally true, however, the reporter saw no need for a retraction. So Reighard sued for defamation…. Because a reasonable jury could have found the tweets' implication—which is that there was a connection between Reighard's administrative leave and the Nassar scandal—to be both false and defamatory, the appellate court held that the claims should [be] allowed to proceed to trial.
The same principle is on display in Hawkins v. Mercy Health Servs., Inc. (Mich. App. 1998). In that case, … [a hospital press release about the death of a patient] stated that "[w]hile the patient was being cared for by two registered nurses and a physician, there appears to have been an inappropriate dosage of medication administered." It also reported that the patient had died. [A] second press release stated that the hospital had "instituted disciplinary action" and that, as a result, "one employee is no longer with the hospital."
The implication of these two press releases, Hawkins argued, is that she was terminated for providing incompetent care to a patient. [She was actually fired for lying about whether she had criticized the doctor in charge of the patient's care. -EV] And the Court of Appeals agreed. It held that a reasonable jury could have found that the implication of the hospital's statements was false even though each part of the statements—taken literally—was, in fact, true. Therefore, it was inappropriate for the trial court to have granted summary judgment to the defendants.
In addition to illustrating the principles underlying a defamation-by-implication claim, Hawkins also touches on another issue that is central to this case: the potential for employers to deflect bad publicity by casting blame on a scapegoated employee during a scandal.
In Hawkins, the hospital was facing intense public scrutiny once it became known that a patient had died after receiving the incorrect dose of medicine. To address that scrutiny, [a team of hospital executives and others] worked together to create a press release that would imply that the hospital had responded to the death by firing the employee who was responsible for it. Outside of that goal, there is no other logical reason to have included details about Hawkins's termination alongside a press release that was otherwise meant to address the patient's accidental death.
The case at hand bears noteworthy similarities to Hawkins. In both cases, the plaintiffs were former employees who alleged that their former employer had defamed them, and in both cases, the result of the defamation was that the company's brand was shielded from harm in the midst of public controversy. Moreover, in both cases, the defamatory statement occurred not because anything the respective employers published was literally untrue, but because of the implication that arose when two statements were placed alongside one another.
In the case at hand, Nexstar's first official statement indicated that the Pride-coverage memo was not consistent with Nexstar's values and that Nexstar would be "taking appropriate action as necessary to address the situation." The second official statement said that Nexstar made changes to the WOOD-TV newsroom leadership team in order to continue providing "outstanding local news coverage." And when a reporter from CNN reached out to ask Weitman whether Fox and Tang, specifically, had been fired as "a result of the investigation into the memo," Weitman responded by saying, "I think that's a fair assumption … but again not attributable."
Weitman later confirmed that it was a "good thing" that CNN was connecting the memo to the terminations of Fox and Tang. Based on this evidence, a reasonable jury could reach the conclusion that Nexstar was deliberately spreading the message that Fox and Tang are anti-gay in order to deflect public outrage away from the company and towards Fox and Tang.
Of course, whether the evidence in the case at hand is actually sufficient to establish that Nexstar did defame Fox and Tang in an attempt to protect its own brand is a question of fact for the jury to decide. The Court's only role, at this stage, is to determine whether a reasonable jury could return a verdict for Fox and Tang on this record. Having reviewed the record, the Court concludes that a reasonable jury could return such a verdict with respect to the defamation claims….
The case did go to a jury, and the jury concluded that defendants did not defame plaintiffs, presumably because the statements weren't sufficiently damaging to plaintiffs' reputations (the jury verdict forms weren't specific on the reason). But it concluded that defendants did place plaintiffs in a "false light," which requires a showing that the statements "were untrue and … would be highly offensive to a reasonable person," and that defendants knew the statements were untrue or were at least quite likely untrue. On that theory, Tang received $1.29M in compensatory damages plus $300K in punitives; Fox received $1.8M in compensatory damages plus $500K in punitives.
Tang and Fox also received $93K each for violations of Michigan's Employee Right-to-Know Act. That Act makes it illegal to "'divulge a disciplinary report, letter of reprimand, or other disciplinary action to a third party' without first providing the employee with written notice that such information is being shared"; plaintiffs alleged that Nexstar had "notif[ied] third-party news outlets about disciplinary action that was being taken against Fox and Tang without first notifying them of such disclosures."
Nancy A. Temple (Katten & Temple LLP) represents Fox; Todd Knecht represents Tang.
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