ABC News Faces Scrutiny Over Report on Trump Family Investments

ABC News is under pressure as venture capital firm 1789 Capital considers legal action due to a controversial report. The report, which involved the Trump family, raised concerns about its accuracy.

We still have our attorneys completely plugged into this, and we’re not taking options off the table because they can’t get away with writing completely false things and hit jobs, said Alexa Henning, a spokesperson for 1789 Capital, to Fox News Digital.

Henning emphasized they would not relent, stating they aim to reveal the truth. This comes after ABC News decided to delete, then republish, a report on alleged investments linked to Donald Trump Jr. and Eric Trump.

The original report alleged that companies associated with Trump’s sons gained billions in government contracts through 1789 Capital. The criticism centered on ABC News’ incorrect claim that 1789 Capital, where Trump Jr. is a partner, significantly invested in defense contractor Anduril Industries. The stated $2.5 billion investment was wrong; the firm’s actual investment was around $50 million.

The initial report appeared under the title, “Trump sons’ investments have won billions in Pentagon contracts since his election,” and was accessible via the Internet Archive’s Wayback Machine.

After legal threats, ABC News withdrew the story, revising it substantially before republishing. The updated article corrected the errors related to investments, contracts, and event timing. It also clarified that Trump Jr. is not involved in investment decisions at the firm. The headline changed to, “New shipyard announced amid earlier Democratic concerns about potential conflicts of interest,” replacing the original reporter’s byline with “ABC News.”

This incident has caused a stir within the media industry. Henning claims there is “no evidence” of wrongdoing by the Trumps, but the misleading report spread widely on social media. Noteworthy figures, such as California Governor Gavin Newsom, shared it.

Despite an editor’s note admitting to “errors,” ABC News has not specified the mistakes or apologized to 1789 Capital. Henning finds this insufficient, urging ABC News to clarify the truth to its audience. She pointed to a history of bias against Trump and his family, referencing a past $16 million defamation settlement between Trump and ABC News.

Henning highlighted a lack of consultation from ABC News before publishing the initial story. An ABC News journalist had once staunchly defended the report, which was eventually retracted.

If you don’t understand investments in venture capital growth, you shouldn’t be reporting on it, Henning remarked. When you’re a reporter, you should want to understand what you’re reporting on.

She questioned claims from media industry insiders, stating the report was “published prematurely.” Henning dismissed this as false, asserting that ABC stood by the report at first.

Calls for an investigation into the report’s origins have emerged, including from Republican Senator Bernie Moreno of Ohio, urging an FCC probe. Henning attributes the false publication to a mix of “laziness” and a desire to “hit the Trump family.” She mentioned confidences from within ABC News acknowledging mistakes.

This story was just false on the facts, she stated.

Henning confirmed their lawyers are monitoring ABC and Disney’s actions, suggesting possible litigation. ABC News has yet to comment publicly.