The California Court of Appeal has upheld a lower court’s decision in a defamation lawsuit brought by film financier Ryan Kavanaugh against YouTuber and H3 Podcast host Ethan Klein.
The ruling denies Klein’s anti-SLAPP motion and allows Kavanaugh’s defamation claims to proceed to trial.
The case stems from a 2019 Variety article that initially reported allegations from an ex-business partner accusing Kavanaugh of running a Ponzi scheme. The article was later updated with a statement from Kavanaugh’s legal team clarifying that the matter had been resolved and that Kavanaugh denied any wrongdoing.
In 2021, Klein was sued in a separate legal case involving Triller Fight Club II, which filed a copyright infringement lawsuit against Klein and his podcast company. The suit alleged that Klein used footage from a pay-per-view boxing and music event owned by Triller without permission.
Klein alleged that Kavanaugh was behind the lawsuit, because he is the founder of Proxima Media, which held a controlling interest in Triller from 2019 to 2022.
Following that accusation, Kavanaugh claims Klein launched a “coordinated online campaign” to damage his reputation, including resurfacing the previously corrected claim from the 2019 Variety article that suggested Kavanaugh had been involved in a Ponzi scheme.
Kavanaugh alleges that Klein continued to cite the original claim in videos and social media posts, portraying him as dishonest and untrustworthy.
According to Kavanaugh’s legal team, “Mr. Klein and his various online platforms republished and sensationalized a claim that had already been corrected, with the intent to discredit Mr. Kavanaugh and damage his reputation.”
“This wasn’t satire or commentary,” they continued. “This was a sustained effort to destroy a reputation using knowingly false information.”
Kavanaugh alleges that Klein knowingly repeated outdated and damaging claims to his audience, presenting them as fact across multiple videos, social media posts, and podcast episodes.
Klein’s anti-SLAPP motion dismissed
Klein responded to the lawsuit with an anti-SLAPP motion, arguing that his content was protected by the First Amendment and constituted fair comment on a public figure. However, both the trial court and the appellate court found that Kavanaugh had shown a probability of prevailing on the merits of his claim, allowing the case to proceed.
In 2022, Klein posted a video titled “Ryan Kavanaugh Is Trying To Ruin Me”, explaining the litigation against him.
In a statement following the appellate decision, Kavanaugh’s spokesperson said, “This ruling is a significant step toward holding those accountable who use their platforms to spread false and malicious information under the guise of free speech.”
Kavanaugh is seeking unspecified financial damages, but sources close to the case indicate that the amount could reach into the millions of dollars if he prevails, citing reputational harm and business disruption. The lawsuit also seeks injunctive relief to prevent further defamatory content from being published.
Legal analysts note the case could have broader implications for online commentary and the responsibilities of content creators, particularly when discussing public figures or previously corrected reports.
The case now moves forward in Los Angeles County Superior Court, where both sides will have the opportunity to present further evidence. No trial date has been set.
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