Kevin O'Leary Sued for Defamation Over Utah Data Center Accusations

It seems even Mr. Wonderful can find himself in a bit of a pickle. Kevin O'Leary, the entrepreneur and familiar face from "Shark Tank," is now embroiled in a defamation lawsuit. The legal action, filed in a U.S. District Court in Utah, stems from some rather serious claims O'Leary made about local opposition to his proposed AI data center project.

The whole situation revolves around the "Stratos Project," O'Leary's ambitious plan for a massive AI data center in Box Elder County, Utah. As you might expect with any large-scale development, it wasn't universally welcomed. Local residents and even some politicians voiced genuine concerns, highlighting issues like the consumption of scarce water resources, potential air pollution, and the impact on the sensitive Great Salt Lake ecosystem. These were, understandably, significant worries for the community.

However, the narrative took a sharp turn when O'Leary began to publicly address the opposition. Between May and June 2026, he made approximately ten media appearances, predominantly on Fox News, where he repeatedly accused his critics of being "proxies for the Chinese government" or having direct ties to the Chinese Communist Party. Among those directly targeted were Joshua Kanter, founder of the progressive nonprofit Alliance for a Better Utah, and Gabrielle Finlayson, founder of the political consulting firm Elevate Strategies. Imagine being a local advocate, simply trying to protect your community's environment, only to be branded a foreign operative on national television. It's a pretty heavy accusation, to say the least.

In what turned out to be a swift and rather public backtrack, O'Leary posted on social media on June 25th, stating quite plainly that he had no evidence linking the Utah groups or individuals to China. The very next day, Fox News host Maria Bartiromo issued an on-air correction, clarifying the record across programs where O'Leary's initial comments had aired. While commendable that corrections were made, the damage, according to the plaintiffs, had already been done.

Consequently, on July 15, 2026, the Alliance for a Better Utah, Elevate Strategies, Joshua Kanter, and Gabrielle Finlayson collectively filed their lawsuit against both Kevin O'Leary and the Fox News Network. They're seeking redress for what they consider to be baseless and defamatory statements. The plaintiffs are being represented by attorneys from Platkin LLP, a New Jersey-based law firm.

For its part, Fox News has indicated that it will "vigorously defend" against the lawsuit, emphasizing their prompt actions to correct O'Leary's statements. As of now, of course, there's been no finding of liability in the case. But this whole episode really does underscore the powerful, and sometimes perilous, intersection of business, media, and public discourse, especially when strong accusations are thrown around.