Kevin O’Leary, Fox News hit with defamation lawsuit over dramatic on-air accusations

BS BRIEF:

• Kevin O’Leary and Fox News were hit Wednesday with a federal defamation lawsuit from Utah nonprofit leaders who say they were falsely accused of acting on behalf of the Chinese Communist Party during a battle over a massive Utah data center project.

• The lawsuit comes just weeks after O’Leary publicly retracted the allegations, admitting he had “no evidence” that the groups or their leaders were funded by China or connected to the CCP. Fox News also issued multiple on-air corrections and apologies.

• The underlying fight over O’Leary’s proposed Stratos Project remains one of the largest development controversies in Utah, with supporters touting economic growth and AI infrastructure while opponents raise concerns about water use, power demands, and local control.

A bitter fight over artificial intelligence, data centers, economic development, and China’s growing influence in America has now spilled into federal court.

“Shark Tank” star and investor Kevin O’Leary, along with Fox News, has been sued by two Utah nonprofit leaders who claim they were falsely portrayed as agents of the Chinese Communist Party during a public battle over one of the largest proposed data center projects in the country.

The lawsuit was filed by Alliance for a Better Utah founder Joshua Kanter and Elevate Strategies founder Gabrielle Finlayson. According to the complaint, O’Leary repeatedly appeared on Fox News programs and accused project opponents of being connected to Beijing, at one point describing them as “proxies for the Chinese Government.” The lawsuit alleges those accusations were repeated across at least ten television appearances and interviews.

The dispute centers on O’Leary’s ambitious Stratos Project, a proposed AI and data center development in northern Utah that originally covered roughly 40,000 acres before later being scaled back amid public opposition. Supporters argue the project would position America to compete in the global race for artificial intelligence infrastructure. Critics have focused on environmental concerns, water consumption, electrical demand, and local development issues.

After legal pressure mounted, O’Leary publicly walked back his allegations.

“Recently I appeared on various news programs and would like to clarify that I have no evidence that Alliance for a Better Utah, Elevate Strategies, Gabrielle Finlayson, Taylor Knuth or Josh Kanter are funded by China or the Chinese Communist Party,” O’Leary wrote in a public retraction.

Fox News followed with a series of on-air corrections.

During multiple broadcasts, Fox hosts informed viewers that neither O’Leary nor Fox News had evidence connecting the organizations or their leaders to Chinese interests. Network personalities also issued formal apologies correcting the earlier claims.

Despite those corrections, the plaintiffs argue the damage had already been done. According to the complaint, the allegations caused “severe reputational damage and significant economic harm,” including lost business opportunities and professional consequences. The lawsuit seeks compensatory and punitive damages.

Fox News is signaling it has no intention of backing down. In a statement, the network said it had “publicly corrected the record on every program where on-air guest Kevin O’Leary’s comments were made” and pledged to “vigorously defend against this lawsuit.”

Accusations of foreign influence have become increasingly common in American political and policy disputes. Concerns about Chinese espionage, technology theft, land purchases, and influence operations are very real. The federal government has repeatedly warned about CCP efforts to infiltrate American institutions and strategic industries.

The courtroom will determine whether O’Leary’s accusations crossed the line from heated political rhetoric into actionable defamation.