Libel Case: Judge Ends Trump's $10 Billion Journal Lawsuit

The financial risk of suing a major newspaper over a single story just ended for one president. On Saturday, U.S. District Judge Darrin Gayles in Miami dismissed Donald Trump's $10 billion lawsuit against The Wall Street Journal and Rupert Murdoch. Because the case was thrown out with prejudice, the legal door is now closed. Trump cannot file this specific suit again, meaning the millions in legal fees and the distraction of a high-profile trial are now a final cost rather than an ongoing expense for his administration.

The core of the dispute centered on a sexually suggestive letter and a drawing that the newspaper said bore Trump's name. The publication reported that the item was found in a 2003 birthday album compiled for Jeffrey Epstein. The letter included text framed by an outline of a hand-drawn naked woman and ended with the phrase, "Happy Birthday and may every day be another wonderful secret." Trump denied writing the letter, calling the story false and malicious.

Judge Gayles ruled that the president failed to meet the legal standard for actual malice. Under the 1964 Supreme Court decision in New York Times Co. v. Sullivan, public figures must prove a media outlet knowingly published false information or showed a reckless disregard for the truth. Gayles wrote that the amended complaint was conclusory and vague. He noted that the allegations regarding malice were often irrelevant to whether the defendants knew the statements were false.

The judge also addressed the paper's handling of Trump's denial. The ruling stated that the Journal did not ignore the president's claims. Instead, the story informed readers that Trump decried the letter as a fake and denied writing it. Gayles called the attempt to find flaws in the investigative reporting a move to manufacture issues where none existed.

This dismissal is the second time the court has rejected the case. Gayles first dismissed the suit in April, giving Trump a chance to file an amended complaint in May. The new ruling confirms the initial finding. The White House did not immediately react publicly to the decision or respond to requests for comment.

The outcome affects Trump's broader legal strategy against news organizations. During his second term, he has pursued adversarial relationships with several outlets. He is currently embroiled in lawsuits involving the BBC, The Associated Press, CNN, MS NOW, and Politico. The latter group is suing for restored access after being banished from the White House in mid-September.

The underlying facts of the Epstein case remain unchanged by this ruling. Epstein died by suicide in a New York jail cell in August 2019. He was awaiting trial on federal sex trafficking charges. The letter in question was reportedly collected by Ghislaine Maxwell for the birthday album years before Epstein's first arrest in 2006 and his subsequent falling-out with Trump.