Kevin O'Leary and Fox News Media face a lawsuit filed July 15, 2026, in U.S. District Court for the District of Utah over false accusations that critics of O'Leary's proposed Utah data center were "proxies" for the Chinese Communist Party.
Alliance for a Better Utah, Elevate Strategies, and two individuals named Kanter and Finlayson brought the defamation case, alleging O'Leary made the unsubstantiated claims repeatedly on Fox platforms between May and June 2026 to oppose local resistance to the Stratos Project—a planned $100+ billion artificial intelligence data center in Box Elder County. The plaintiffs claim the broadcasts caused online harassment, conspiracy theories, and business damage, and they seek compensatory and punitive damages. Both O'Leary and Fox News have said they intend to defend the lawsuit.
Official resources:
- Utah Federal Court — Use this primary source to review the underlying data.
- Explore the official data from Variety — Use this primary source to review the underlying data.
Table of Contents
- The Core Accusations and Their Context
- Fox News's Role in Amplifying the Claims
- The Reversals and Network Corrections
- What Damages Are Being Sought
- The Defense and Current Status
- Frequently Asked Questions
The Core Accusations and Their Context
On May 11, 2026, O'Leary accused the plaintiffs of being funded by or connected to the Chinese Communist Party without providing evidence. The accusation came as a response to organized local opposition to his data center proposal in Utah.
O'Leary repeated similar allegations in multiple subsequent interviews over the following six weeks. The accusations appeared across at least 10 separate Fox media appearances between May and June 2026, broadcast to millions of viewers. The lawsuit alleges this was a campaign to discredit opponents of the project by linking them to a foreign adversary—a tactic the plaintiffs say had no factual basis.
Fox News's Role in Amplifying the Claims
Fox News was "instrumental" in the campaign, putting O'Leary on air five times in three weeks and repeatedly inviting him to broadcast accusations without qualification. The plaintiffs argue the network failed to verify the claims or add disclaimers, allowing unsubstantiated allegations to reach a mass audience without journalistic scrutiny.
This amplification is significant because the lawsuit claims it directly contributed to the alleged harm—online harassment, conspiracy theories, and reputational damage to the organizations and individuals named. The scale of reach matters in defamation claims; isolated statements carry different legal weight than repeated broadcasts to millions.
The Reversals and Network Corrections
By late June 2026, O'Leary changed course. He stated publicly that he has "no evidence" the organizations are funded by China or the Chinese Communist Party.
This reversal came after weeks of making the opposite claim on air. Fox News also corrected the record on every program where O'Leary's comments aired and issued an on-air apology for not qualifying his unsubstantiated claims. However, the lawsuit argues that corrections and apologies after widespread publication do not undo the initial damage to reputation and safety.
What Damages Are Being Sought
The plaintiffs seek compensatory damages for documented harm plus punitive and exemplary damages intended to deter future misconduct. Punitive damages—penalties beyond actual losses—are meant to punish reckless behavior; exemplary damages serve a similar purpose with an emphasis on deterrence.
No court has yet ruled on whether O'Leary or Fox are liable or what amount, if any, may be awarded. The specific dollar amounts sought have not been disclosed in available court filings.
The Defense and Current Status
O'Leary's attorney stated he intends to defend the lawsuit "vigorously" and may pursue counterclaims. Fox News has said it will contest the suit. Both defendants have signaled they do not view the case as settled by the mid-June corrections.
This is an active lawsuit in early stages. Neither defendant's agreement to make corrections constitutes an admission of liability in the court proceedings. The case outcome remains uncertain, and readers should monitor court filings for updates on motions, discovery, and any settlement developments.
Frequently Asked Questions
Can I join this lawsuit as a plaintiff?
No. This is a named-party lawsuit brought by specific organizations and individuals directly harmed by the allegations, not a class action open to others who may have seen the broadcasts.
Does Fox News's apology mean they admitted wrongdoing?
No. An apology or correction does not equal a legal admission of liability. Both defendants have stated they intend to defend the lawsuit, meaning they dispute the claims in court.