DJT Stock In Focus: Federal Judge Throws Out Trump Media Defamation Lawsuit Against The Washington Post

The decision adds another challenge for DJT as investors grapple with weak financial results and questions over the company's evolving strategy.

• Judge Thomas Barber ruled the newspaper did not act with actual malice, citing reporter Drew Harwell's investigation.
• The lawsuit stemmed from a 2023 Washington Post report on Truth Social's financing before its merger with Digital World Acquisition Corp. 
• The ruling adds to Trump Media's challenges as its stock remains down nearly 40% this year. 

Trump Media & Technology Group Corp. (DJT) suffered a significant legal setback after a federal judge dismissed the company's $3.8 billion defamation lawsuit against The Washington Post. 

U.S. District Judge Thomas Barber ruled in favor of The Washington Post, saying Trump Media did not provide enough evidence to show the newspaper acted with "actual malice," the legal requirement for public figures to win a defamation lawsuit.

Judge Cites Reporting Process, Rejects Actual Malice Claim 

The lawsuit emerged from a May 2023 Washington Post report about financing for Trump's Truth Social platform before its merger with Digital World Acquisition Corp. The story covered an $8 million loan and a proposed $240,000 referral fee that Trump Media said was reported incorrectly. 

Trump Media originally sought $3.8 billion in damages, saying the article damaged its reputation and business. As the case moved forward, it was narrowed to two statements about whether the referral fee had actually been paid.

Judge Barber ruled that the evidence did not support a finding that The Washington Post knowingly published false information or acted with disregard for the truth. 

The decision cited the reporting process undertaken by journalist Drew Harwell, who interviewed former Trump Media co-founder Will Wilkerson and reviewed documents available during the investigation.

Although The Washington Post later issued a correction acknowledging that discovery showed the referral fee had not been paid, the court found that the correction did not establish actual malice at the time of publication.

Trump Media & Technology stock edged 0.5% higher overnight, ahead of Wednesday. 

DJT Stock Remains Under Pressure As Financial Challenges Persist 

The ruling comes as the social media company's shares continue to struggle in 2026, adding another challenge for a business already facing weak financial performance and investor concerns.

The stock has fallen nearly 40% so far this year after dropping to a record low in late June as investors focus on the company's underlying financial performance rather than momentum-driven trading.

The company's Truth Social platform generated less than $1 million in revenue during the first quarter while net losses widened to $406 million. Ongoing spending on technology infrastructure, legal matters and operations has kept expenses elevated, reinforcing concerns about the pace at which the business can achieve sustainable growth.

Trump Media also surprised investors with plans announced in late 2025 to merge with fusion energy developer TAE Technologies in an all-stock transaction valued at more than $6 billion. The proposed deal would expand the company's focus beyond social media, prompting questions about its long-term corporate strategy and business identity.

DJT Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. The stock saw a 29% increase in message volume over the past week, with watchers remaining flat. 

DJT stock has crashed 57% in the last 12 months. 

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