Bruce S. Rosen Argues on Behalf of CNBC in Appeal of Defamation Suit Brought by Nikola Corp. Founder
Bruce S. Rosen, a partner at Pashman Stein Walder Hayden P.C., recently argued before a New Jersey Appellate Division panel on behalf of CNBC in Trevor Milton v. CNBC Inc. et al. in a lawsuit brought by Milton, founder of Nikola Corp., who was convicted of federal securities and wire fraud in 2022, and who alleged that CNBC’s coverage of his conduct in an episode of “American Greed” constituted trade libel, rather than ordinary defamation, which would be time-barred.
"This is not only a case of misapplied defamation — it's a case of over-applied hubris," argued Rosen, in an argument that was reported by Law360. "Mr. Milton's reputation was pummeled long before the airing date by the indictments, SEC complaints, civil lawsuits. And that reputation plunged further with Mr. Milton's conviction of securities fraud just 10 days after the episode aired, and even further after he was sentenced to four years of federal prison."
Rosen said the episode, which aired in October 2022, was drawn "95% from public records" including federal indictments, Securities and Exchange Commission filings and civil suits and was therefore shielded by the state's fair report privilege. What remained, he added, were opinions, commentary and rhetorical hyperbole — all constitutionally protected speech.
Rosen argued that Milton’s attempt to reframe a time-barred defamation claim as trade libel was an improper effort to extend the statute of limitations. “There’s no trade libel here,” he explained, noting that the claim applies only to false statements about a product or property, not to commentary on personal integrity or conduct.
Milton’s attorneys argue that broadcasting the episode during the trial was evidence of actual malice, a required element of trade libel. "Motive isn't malice. You must plead specific facts showing that CNBC knew its statements were false — not that it was aggressive or unflattering," said Rosen.
The appeal was based on New Jersey's 2023 anti-SLAPP (Strategic Lawsuit Against Public Participation) statute — the Uniform Public Expression Protection Act (UPEPA). Rosen called Milton's lawsuit "the definition of a SLAPP suit," aimed at punishing protected reporting on a matter of public concern.
The case, Trevor Milton v. CNBC Inc. et al., is pending before the Superior Court of New Jersey, Appellate Division.
To read the full article in Law360, click here.