Accused on National TV. Cleared by the Retraction.

Building with columns and statues in front of entrance.

When a TV star and a major news network admit they had “no evidence” for branding local activists as Chinese Communist Party operatives, it raises hard questions about who really controls the story of ordinary Americans standing up to powerful interests.

Story Snapshot

Kevin O’Leary and Fox News are facing a defamation lawsuit over claims that Utah nonprofits and activists were “proxies” for the Chinese government.
Both O’Leary and Fox have publicly walked back those accusations, saying they have “no evidence” the named groups or people are funded by China.
The case highlights how big media and wealthy investors can turn local policy fights into national “foreign threat” narratives that harm regular citizens.
The lawsuit will test modern defamation law and whether powerful voices can be held accountable when they push unproven claims about foreign influence.

How a Utah Data Center Fight Turned into a China Spy Story

Kevin O’Leary, the celebrity investor from “Shark Tank,” is backing a huge data center project near Utah’s Great Salt Lake. Local residents and progressive activists, including political consultant Gabi Finlayson and attorney Josh Kanter, raised concerns about water use and environmental damage from the project. In May 2025, O’Leary went on Fox Business and claimed that these opponents were “proxies for the Chinese government,” naming Alliance for a Better Utah, Elevate Strategies, Finlayson, Kanter, and others as part of “two cells inside Utah” funded by China.

Fox News and Fox Business then replayed and echoed those claims on multiple shows, including “Mornings with Maria” hosted by Maria Bartiromo and weekend commentary programs. O’Leary suggested his team had dug into internet addresses and uncovered foreign links, but he did not present documents, government records, or financial data to prove any of this. For the targeted activists, the effect was immediate: they were pushed into online conspiracy circles and branded as secret agents of the Chinese Communist Party by strangers who only knew them from TV clips and social media posts.

Retractions, Apologies, and Claims with “No Evidence”

After the activists’ lawyer sent a demand letter asking for a retraction, O’Leary posted a statement on June 25, 2025, admitting he had “no evidence” that Alliance for a Better Utah, Elevate Strategies, Finlayson, Taylor Knuth, or Kanter are funded by China or the Chinese Communist Party. Fox News followed with an on-air apology, saying O’Leary had “corrected the record” and that Fox News Media was “likewise aware of no evidence” that the named groups or individuals were funded by or acting at the direction of Chinese interests. Utah State Senator Todd Weiler, who had boosted the China narrative based on information from O’Leary’s team, also walked it back, saying “Oops. I was duped” and apologizing for pushing the claim that Alliance for a Better Utah was partly funded with Chinese money.

The lawsuit filed by Finlayson and Kanter goes further than simple retraction. It alleges that O’Leary wrongfully accused them of serious crimes, including acting as unregistered foreign agents and engaging in money laundering, and claimed to have reported them to federal authorities despite having no proof. The suit also argues that Fox News let O’Leary repeat these accusations without questioning or verifying them, amplifying the damage to the plaintiffs’ reputations and careers. So far, no Freedom of Information Act records, financial audits, or government filings have surfaced to support any link between the plaintiffs and the Chinese government.

What This Fight Says About Power, Media, and Defamation Law

This case lands at a time when defamation lawsuits in politics and media are rising and becoming more polarized. Under the Supreme Court’s “actual malice” standard from New York Times v. Sullivan, public figures and people tied to public debates must prove that the speaker knew a statement was false or acted with reckless disregard for the truth. That higher bar was meant to protect free political speech, but it also makes it harder for regular citizens who get pulled into national fights to hold powerful voices accountable when those voices make wild accusations.

Fox News and Kevin O’Leary Are Sued Over Claim That Nonprofits Worked for Chinese Communist Party https://t.co/S2RlMUf3Yr

— Mediaite (@Mediaite) July 16, 2026

For many Americans, this story taps into a deeper frustration that crosses party lines. People on the right see media outlets and political insiders pushing dramatic foreign threat stories instead of fixing real problems like water scarcity, energy costs, and local economic strain. People on the left see activists and nonprofits smeared as traitors when they challenge big corporate projects or raise climate and community concerns. In both cases, it looks like large media platforms and wealthy investors can casually paint critics as enemies of the state, then offer brief apologies later when the facts do not hold up.

Why It Matters Beyond Utah

When foreign influence is real, it deserves serious investigation and clear proof. But when powerful people throw around labels like “Chinese government proxies” without evidence, it can scare citizens away from speaking up and organizing in their own communities. This Utah case shows how quickly a local zoning and environmental fight can be turned into a national “spy” story that fits cable news drama but leaves real neighbors dealing with harassment and damaged careers. The upcoming court battle will not just be about one data center; it will test how much truth still matters when elite voices talk about foreign threats and ordinary Americans caught in the middle try to defend their names.