Summary
Kevin O’Leary, the well-known investor from Shark Tank, is being sued for defamation along with Fox News. Two Utah political groups and their founders claim O’Leary falsely accused them of being linked to the Chinese Communist Party (CCP) to discredit their opposition to his large data center project. The lawsuit, filed in Utah federal court, says these statements caused serious harm to their reputations and safety.
Main Impact
The defamation lawsuit directly challenges O’Leary’s public claims that the groups were part of a Chinese-backed campaign against his data center. The plaintiffs argue that O’Leary’s repeated statements on Fox News programs damaged their credibility, caused financial losses, and led to threats. This case highlights the growing tension between business leaders and local activists over large tech projects, especially as public opposition to data centers rises across the country.
Key Details
What Happened
In May 2026, Kevin O’Leary appeared on several Fox News shows and accused two Utah-based organizations—Alliance for a Better Utah and Elevate Strategies—of being “cells” working for the Chinese Communist Party. He claimed they were behind a flood of bot-written comments opposing his proposed data center, the Stratos Project, in Box Elder County. The lawsuit, filed on July 17, 2026, says O’Leary made these false accusations in at least 10 media appearances between May 11 and June 3.
Important Numbers and Facts
The plaintiffs include Joshua Kanter, founder of Alliance for a Better Utah, and Gabrielle Finlayson, a founder of Elevate Strategies. They are seeking compensatory damages (to be decided at trial) and punitive damages to punish O’Leary and Fox News. O’Leary’s lawyer called the lawsuit a “cash grab,” while Fox News said it corrected the record on every program where O’Leary spoke. O’Leary later posted a clarification on Instagram on June 25, saying he had no evidence linking the groups to China.
Background and Context
The Stratos Project is a massive data center complex planned for tens of thousands of acres near the Great Salt Lake in Utah. It could support up to nine gigawatts of AI computing power. Many local residents oppose it due to concerns about water use, environmental damage, and changes to their community. In May, a public meeting turned chaotic when protesters shouted at county commissioners, who then voted virtually to approve the project. Since then, several politicians who supported the project have lost elections, including Utah state senate president Stuart Adams and two Box Elder County commissioners.
O’Leary recently reduced the project’s footprint from 40,000 acres to 20,000 acres, with only 10,000 acres for development. This battle is part of a wider national backlash against data centers. A Gallup survey from May 2026 found that 7 in 10 Americans oppose having an AI data center built in their area.
Public or Industry Reaction
The lawsuit has drawn attention from both sides. The plaintiffs’ law firm, Platkin LLP, said O’Leary’s clarification on Instagram only came after they sent a legal demand, and that it does not undo the harm caused by his “weeks-long smear campaign.” O’Leary’s attorney, Jeff Neiman, argued that the lawsuit will open the groups to scrutiny about their funding and operations. Fox News stated it “publicly corrected the record” on every show where O’Leary’s comments were made and will “vigorously defend” against the lawsuit.
What This Means Going Forward
This case could set a precedent for how public figures and media outlets handle accusations about foreign influence in local disputes. If the plaintiffs win, it may discourage similar claims without evidence. For O’Leary, the lawsuit adds legal and reputational risk to his data center plans, which already face strong local opposition. The outcome may also affect how other tech projects navigate community resistance, especially as data center construction continues to grow nationwide.
Final Take
The defamation lawsuit against Kevin O’Leary and Fox News shows how quickly public accusations can backfire. While O’Leary’s data center project remains controversial, his claims about Chinese influence have now become a legal problem. This case underscores the importance of backing up serious allegations with evidence, especially when they involve national security and foreign ties.
Frequently Asked Questions
What is the defamation lawsuit about?
Two Utah political groups and their founders are suing Kevin O’Leary and Fox News. They claim O’Leary falsely accused them of being linked to the Chinese Communist Party to discredit their opposition to his data center project. The lawsuit says these statements caused reputational harm, financial losses, and safety threats.
Why is Kevin O’Leary building a data center in Utah?
O’Leary’s Stratos Project is a large data center complex planned for Box Elder County, Utah. It is designed to support AI computing and could use up to nine gigawatts of power. The project has faced strong local opposition over environmental and water concerns.
What did Fox News say about the lawsuit?
Fox News said it corrected the record on every program where O’Leary’s comments were made and that it will “vigorously defend” against the lawsuit. O’Leary’s lawyer also said the lawsuit is a “cash grab” and that O’Leary clarified his remarks weeks ago.
