President Donald Trump's defamation lawsuit seeking at least $10 billion in damages against the Wall Street Journal was dismissed on April 13, 2026, according to reports from Investing.com. A federal judge ruled that Trump failed to "plausibly allege" that the Journal's Epstein reporting defamed him. The lawsuit, which was refiled after a judge threw out an earlier version over legal deficiencies, alleged that the Rupert Murdoch-owned newspaper tarnished Trump's reputation with an article describing a birthday card to deceased sex offender Jeffrey Epstein as bearing Trump's signature. Trump and his lawyers maintain the card is fake, even after it was released by lawmakers investigating Epstein's case.
On the same day as Trump's lawsuit refiling, reports emerged that the Trump administration is in talks to fund several US drone manufacturers through Pentagon-linked channels, as reported by Investing.com. The Pentagon has identified Performance Drone Works, Unusual Machines, and Neros Technologies as potential recipients of funding deals. Discussions involved the Office of Strategic Capital, a lending office originally established to support national security supply chains, with months of talks described between private-sector drone companies and Pentagon officials. Notably, Unusual Machines counts Donald Trump Jr. as a shareholder and advisory board member, though the article does not disclose specific funding amounts or near-term contract awards.
Despite the lawsuit's dismissal, News Corp (NWS) stock continues to trade at $29.68 with a $15.2 billion market cap, as noted by The Technical Trader. The stock appears to be pricing in continued legal risks rather than the positive resolution. The disconnect between the narrative and execution represents a significant opportunity for investors, as the company's subscription business growth and 100-plus basis-point EBITDA margin expansion trajectory aren't reflected in current valuations. At roughly 10 times EV/EBITDA on $8.9 billion in estimated FY2026 revenue and rising margins, the stock doesn't price in the subscription growth already happening, instead pricing in what analysts describe as a "ghost."
The lawsuit filed in Miami federal court names Rupert Murdoch, Dow Jones, News Corp and its CEO Robert Thomson, along with two Wall Street Journal reporters, Khadeeja Safdar and Joseph Palazzolo, as defendants, as reported by Investing.com. The lawsuit alleges they defamed Trump and caused him to suffer "overwhelming" financial and reputational harm. Dow Jones has stated it has full confidence in the rigor and accuracy of the Journal's reporting and will vigorously defend the lawsuit. Trump is seeking the same $10 billion damages amount that he had previously sought. Trump has filed similar defamation actions against the New York Times, BBC, and Des Moines Register over the past year.
Despite the headline-grabbing $10 billion figure, NWSA analysis reveals the lawsuit carried minimal financial risk for News Corp. The company's market cap stands at approximately $15.2 billion, meaning even if the court awarded the full $10 billion, it would represent roughly 66% of the company's total market value - a figure no court in American history has awarded in a defamation case involving a media defendant and a public figure. The last time a public figure won a substantial defamation judgment was in the tens of millions, not billions. The dismissed suit's impact on News Corp's valuation was significant, as it removed the political overhang that had been weighing on the stock for nearly a year. Meanwhile, the Pentagon's drone funding discussions could benefit larger defense contractors such as AeroVironment (AVAV) and Kratos Defense (KTOS), which typically trade alongside any expansion of domestic unmanned systems funding.
Epstein, the disgraced financier and sex offender, died in a New York jail cell in 2019, as reported by Business Standard. His case generated conspiracy theories that became popular among Trump's base of supporters who believed the government was covering up Epstein's ties to the rich and powerful. Trump has stated he parted ways with Epstein before the financier's legal troubles became public in 2006. The case has become a central point in Trump's ongoing legal battles with media organizations.
