Kevin O’Leary and Fox News Face Defamation Lawsuit Over China Claims

3 min readSources: Courthouse News

Four plaintiffs sued Fox News and Kevin O’Leary for defamation over false China funding claims.

Why it matters: The case highlights legal risks for media and public figures making unverified allegations, underscoring challenges in defamation law and media liability for legal professionals advising clients in these sectors.

  • Plaintiffs filed the lawsuit on July 15, 2026, including the Alliance for a Better Utah and Elevate Strategies.
  • Kevin O’Leary made at least 10 on-air claims linking plaintiffs to Chinese funding between early 2026 and June 2026.
  • O’Leary retracted his statements on June 25, 2026, admitting a lack of evidence for the China connection.
  • Fox News issued a corrective on-air apology on June 27, 2026, acknowledging the previous claims were unsupported.

On July 15, 2026, a defamation lawsuit was filed in Utah against Kevin O’Leary and Fox News by four plaintiffs, including Alliance for a Better Utah and Elevate Strategies. The plaintiffs allege O’Leary repeatedly accused them during at least 10 Fox News appearances of being proxies for the Chinese government, specifically in relation to opposition against O’Leary’s proposed 40,000-acre Stratos Project data center in Utah.

The complaint contends these allegations—broadcast between early 2026 and June 2026—lacked evidence and falsely linked local critics to the Chinese Communist Party. The Stratos Project itself has faced criticism relating to environmental impacts, including concerns about water use and land consumption, but the suit focuses on defamation regarding unsubstantiated foreign influence claims.

O’Leary formally retracted these statements on June 25, 2026, publicly acknowledging he had "no evidence" supporting claims of Chinese funding. Following this, Fox News aired an apology on June 27, clarifying that the prior allegations were unsubstantiated.

This lawsuit adds to Fox News's ongoing legal challenges with defamation claims. Notably, in 2023, Fox News settled a $1.6 billion defamation suit filed by Dominion Voting Systems for $787.5 million after airing false claims regarding the 2020 election.

Legal experts emphasize that this case illustrates persistent difficulties for broadcasters and public figures in verifying claims before airing them. Professor Jennifer K. Lee, a media law specialist at the University of Utah, notes, "This lawsuit underlines that media platforms and personalities face mounting scrutiny over defamation risks, especially when allegations could harm reputations without evidence." Meanwhile, Richard Grant, a litigation attorney who represents media clients, adds that "The O’Leary case highlights how retractions and apologies may mitigate but do not eliminate legal exposure in defamation suits." These insights provide context for legal professionals counseling clients in media and related industries.

By the numbers:

  • 4 plaintiffs — including Alliance for a Better Utah and Elevate Strategies, filed suit
  • 10+ — Fox News appearances where false China link claims were made
  • $787.5 million — 2023 Fox News settlement in Dominion Voting defamation case

Yes, but: Although Fox News and O’Leary issued retractions and apologies, the legal process will examine whether these steps are sufficient to avoid liability under defamation law.

What's next: The court is expected to schedule initial hearings in late 2026, and legal experts anticipate the case will test evolving standards for media liability in political and environmental controversies.