USA Today v. Ryan, LLC
Court: Texas Supreme Court
Date Filed: May 27, 2025
Background: In 2022, Ryan, LLC sued USA Today for defamation over a series of investigative stories reporting controversies involving the tax consulting company’s pursuit of potential tax refunds in Arizona and North Dakota through direct refund requests to state tax authorities.
USA Today moved to dismiss the lawsuit under the Texas Citizens Participation Act, the state’s anti-SLAPP law, which protects defendants from meritless lawsuits intended to stifle the exercise of First Amendment rights. The trial court denied USA Today’s motion to dismiss, which an appeals court later affirmed.
It was undisputed that the article contained no factual errors and that it included not only the accurate allegations of third parties but also Ryan’s own response to these accusations. Nevertheless, in its decision, the appeals court held that Ryan had met its burden of producing prima facie evidence that the “gist” of the reporting was false and defamatory. The appeals court reached that conclusion despite the fact that the reporting of third-party allegations (which Ryan’s defamation-by-implication claims arise from) is expressly protected by Texas law.
USA Today filed a petition asking the Texas Supreme Court to hear the case.
Our Position: In a friend-of-the-court brief, the Reporters Committee for Freedom of the Press and the Texas Press Association urge the Texas Supreme Court to grant USA Today’s petition and reverse the appeals court’s decision.
- The appeals court’s erroneous defamation-by-implication holding misapplied Texas substantial truth law and jeopardizes investigative reporting in the public interest.
- The third-party allegations rule is essential to news reporting, and the appeals court’s decision undercutting it will chill journalism on matters of public concern.
From the Brief: “If permitted to stand, the lower court’s decision will not only chill investigative reporting into Ryan’s tax refund lobbying campaigns, but also will threaten a broad range of investigative journalism in the public interest in Texas.”