The Delaware court has ruled that Warner Bros. Discovery must disclose financial information as a defamation trial looms.

A Delaware court ruled on Friday that Warner Bros. Discovery must provide detailed financial documents to support a plaintiff's defamation lawsuit or provide a "sworn declaration" that they do not exist.

CNN is accused by U.S. Navy veteran Zachary Young of smearing his security consulting company, Nemex Enterprises Inc., by implying it illegally profited when helping people flee Afghanistan during the Biden administration's military withdrawal from the country in 2021. Young claims that CNN "destroyed his reputation and business" during a segment on "The Lead with Jake Tapper."

A Florida judge previously agreed with Young's legal team that CNN should hand over sensitive financial information to determine its net worth. However, Young's attorneys claim that they have not received the necessary documents and have filed a motion to compel in Delaware, where Warner Bros. Discovery is located.

Blake Bennett and Joe Delich, attorneys for Young, stated that Warner Bros. Discovery has not been able to complete financial discovery related to cash flow statements and balance sheets.

Judge Lynne Parker was told by Delich that it is unbelievable that Warner Bros. Discovery cannot provide cashflow and balance sheet information for its wholly owned subsidiary.

"Warner Bros. Discovery has not provided any information about cashflow or balance sheet information, but we know they have the capability to do so."

Delich explained that Warner Bros. Discovery publicly files consolidated financial statements with the SEC.

Delich stated that in order to create consolidated financial statements, there must be something to combine.

Jennifer Ying, representing Warner Bro. Discovery, contended that the plaintiff's team submitted a "premature motion" before the subpoena return date and the subpoena did not specify cash flow statements and balance sheets. Ying added that Warner Bro. Discovery has "repeatedly" clarified that the documents do not exist.

Ying stated that if something does not exist, we cannot be forced to create anything.

"She continued, "We have informed them twice that the information they seek does not exist, but they refuse to accept it. We cannot manufacture information that is nonexistent.""

Judge William Henry, presiding over the case in Florida, previously ordered CNN to produce any documents within its possession, custody, or control. However, he clarified that there is no law that would require a CNN executive to provide a sworn statement or declaration stating that the documents do not exist.

Judge Lynne Parker disagreed and stated that Young's attorneys must submit a new subpoena requesting cash flow statements and balance sheets. If the information is not provided promptly, CNN's parent company will be held responsible.

Judge Parker stated that CNN is not obligated to provide a sworn declaration, but Warner Bros. is. You will be subpoenaing Warner Brothers to produce specific documents, and they will either provide the documents or give a sworn declaration stating their non-existence.

"She instructed to issue the subpoena immediately and gave them 20 days from the date of issuance to respond."

On January 6th, a civil trial will commence in the Circuit Court for Bay County, Florida, presided over by Judge Henry.

The CNN segment at the center of the suit, which was shared on social media and also repackaged for CNN's website, began with Tapper informing viewers that CNN correspondent Alex Marquardt found "Afghans trying to get out of the country face a black market full of promises, demands of exorbitant fees, and no guarantee of safety or success."

Marquardt accused Young of exploiting desperate Afghans by charging exorbitant and impossible amounts for transportation to Pakistan or the United Arab Emirates. He displayed Young's face on the screen and stated that his company was asking for $75,000 to transport a vehicle of passengers to Pakistan or $14,500 per person to reach the United Arab Emirates.

Marquardt informed viewers that prices were unaffordable for most Afghans.

Young accused CNN of misrepresenting him as a predatory actor who exploited desperate people through the use of "black market," "exploit," and "exorbitant" in an inaccurate portrayal.

CNN editors were concerned about a segment but aired it anyway, according to internal communications revealed during the discovery process. Meanwhile, other internal communications showed that CNN employees used profanities and disparaging language when privately discussing Young.