‘Shark Tank’ Star Kevin O’Leary Sued For Claiming Utah Data Center Opposition Has Ties to China

Variety ·

Kevin O'Leary, the "Shark Tank" star, is being sued for defamation alongside Fox News by a group opposing a data centre project he is planning in Utah. The lawsuit, filed on Wednesday in Utah federal district court, follows O'Leary's on-air claims that individuals involved in the opposition had ties to China, allegations he has since publicly retracted after admitting he had no evidence to support them.

The suit was brought by the Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson and Josh Kanter, who say the claims caused reputational, financial and emotional harm, as well as ongoing safety concerns. It alleges O'Leary attacked the plaintiffs on Fox News five times over three weeks, and accuses the network of repeatedly broadcasting the unsupported claims to millions of viewers. Fox News said it had corrected the record on every relevant programme and would "vigorously defend" against the lawsuit, while O'Leary, who apologised via social media in late June, said he had "no evidence" the named individuals or groups were funded by China or the Chinese Communist Party.

In short

  • O'Leary and Fox News sued for defamation over Utah data centre claims
  • Suit alleges false claims of Chinese funding harmed opposition group members
  • O'Leary and Fox have since retracted and apologised for the allegations

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

The defendants contend that whilst the initial statements were unsubstantiated, the subsequent apology, public retraction and Fox News's on-air corrections demonstrate good faith rather than malice or reckless disregard for truth. They argue that correcting the record before a significant audience, combined with the acknowledgement of lacking evidence, should substantially mitigate damages in defamation cases. Free speech protections allow for some tolerance of inaccurate statements, particularly regarding matters of public concern, provided speakers promptly remedy their errors.

The case against

The plaintiffs argue that broadcasting serious allegations of foreign influence without evidence, repeated five times over three weeks to millions of viewers, constitutes actionable defamation regardless of subsequent apology. They contend that the reputational, financial and safety harms caused by the false claims cannot be adequately remedied by retractions that reach far fewer people than the original broadcasts. Making unsubstantiated allegations about ties to a hostile foreign power demonstrates reckless disregard for truth and caused quantifiable harm warranting compensation.

Explained simply

Kevin O'Leary is an American businessman and television personality known for his role on the investment show "Shark Tank". He is planning to develop a data centre in Utah, a project that has attracted opposition from local groups and individuals.

O'Leary claimed on Fox News that some of those opposing the development had connections to China. He repeated this allegation several times over the course of weeks before retracting it and acknowledging he had no evidence to support the claim.

Data centres are large-scale infrastructure projects that can have significant effects on local communities. They often attract opposition and public debate about their impacts.

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