Salem Sues Insurance Company Over 2000 Mules Case
Salem Media Group is suing insurer Atlantic Specialty Insurance Company in the Central District of California for breach of contract after the insurer declined to pay a claim under the “Producer and Entertainment Advantage Policy,” it sold Salem (for the policy period of April 29, 2022 through April 29, 2023) that provided for “$5,000,000 for each claim and in the aggregate, with a retention amount of $25,000” for numerous
liabilities, including defamation. The claim was the result of Georgia resident Mark Andrews suing Salem for defamation after the film and its trailer falsely depicted Andrews committing a crime (ballot stuffing). Salem has since apologized to Andrews. Atlantic denied the claim arguing that an “occurrence that was first committed” happened before the policy inception date,” and further that it could deny coverage because there was no previous insurance for 2000 Mules although Salem says it had proof of just such a policy. Atlantic also denied saying that pre-policy advertising contributed to the defamation claim, but Salem argues that this was done by third-parties “for which Salem Media, as the film distributor, was not responsible.” Salem is asking for a jury trial.
and the book, we relied on representations made to us by [producer] Dinesh D’Souza and True the Vote, Inc that the individuals depicted in the videos provided to us by TTV, including Mr. Andrews, illegally deposited ballots. We have learned that the Georgia Bureau of Investigation has cleared Mr. Andrews of illegal voting activity in connection with the event depicted in 2000 Mules. It was never our intent that the publication of the 2000 Mules film and book would harm Mr. Andrews. We apologize for the hurt the inclusion of Mr. Andrews’ image in the movie, book, and promotional materials have caused Mr. Andrews and his family. We have removed the film from Salem’s platforms, and there will be no future distribution of the film or the book by Salem.” The statement refers to Georgia resident Mark Andrews, who is suing D’Souza, Salem, and two people involved with True the Vote for defamation. 
for violation of his contract for working with the upstart platform that promoted Gargano as “coming soon” at its launch last week. PHLY is operated by the ALLCITY Network. The Inquirer reports, “Beasley said Gargano told ‘The Fanatic’ on Sept. 11, less than 24 hours before PHLY launched, that he intended to continue hosting his show while also accepting employment with the new sports outlet, where among other things he would write articles and appear on podcasts.” Beasley says that is in violation of his contract that runs through October of 2024, which states he is “prohibited from providing services to a competing business while he is employed by Beasley.” 
Second Amendment Foundation. The complaint states that journalist Fred Riehl was researching the case of The Second Amendment Foundation v. Robert Ferguson and asked ChatGPT to provide a summary of that complaint and received one that stated the suit’s plaintiff is Second Amendment Foundation founder Alan Gottlieb who accuses Walters as treasurer and chief financial officer of embezzling funds. Walters says, and Gottlieb confirms, that he didn’t serve in either position and didn’t steal anything. In the AI world, false text from services like ChatGPT are called “hallucinations.” As with any defamation case, Walters will have to prove he’s suffered damages, but this case will be interesting to watch as it appears to be the first such legal case involving the work of AI.