Mr. Wonderful Sued: Kevin O'Leary Faces Defamation Claims Over 'Chinese Proxy' Accusations in Utah Data Center Dispute

It seems even 'Mr. Wonderful' can find himself in a bit of a legal pickle, and this time, it’s a big one. Kevin O'Leary, the sharp-tongued investor we all know from "Shark Tank" and "Dragons' Den," is currently embroiled in a significant defamation lawsuit right here in the U.S. He, alongside Fox News Network LLC, is being sued by several Utah-based progressive organizations and their founders. The heart of the matter? Allegations that O'Leary falsely painted his critics as proxies for the Chinese government, simply because they spoke out against one of his ambitious projects.

The plaintiffs in this case are Joshua Kanter, the founder of Alliance for a Better Utah, and Gabrielle Finlayson, co-founder of Elevate Strategies, along with their respective organizations. They filed the lawsuit on July 15, 2026, in the U.S. District Court for the District of Utah. Their contention centers on a proposed data center, dubbed the 'Stratos Project,' that O'Leary has been championing for Box Elder County, Utah. Local environmental groups and community advocates, like the plaintiffs, raised some very real concerns about the project's potential impact on Utah's precious water resources, air quality, and, importantly, the delicate ecosystem of the Great Salt Lake.

Now, here's where things took a rather dramatic turn. According to the lawsuit, between May 11 and June 3, 2026, Mr. O'Leary embarked on what the plaintiffs describe as a "weekslong smear campaign." Across at least ten different media appearances, O'Leary allegedly made a series of damning accusations, claiming that those who criticized his data center project were, in fact, tied to Chinese interests, acting as "proxies for the Chinese government," or even funded by the Chinese Communist Party. Can you imagine such a charge?

And Fox News, notably, is also a defendant, accused of having facilitated these highly inflammatory and, the plaintiffs argue, false accusations. The lawsuit suggests that the network repeatedly invited O'Leary onto its shows, allowing him to air these claims without, it seems, ever bothering to contact the plaintiffs for their side of the story or even attempting to verify the explosive allegations. This all apparently kicked off after O'Leary first discussed the data center on "Fox and Friends" back on April 27, 2026.

To their credit, both O'Leary and Fox News have since issued retractions and corrections. O'Leary himself stated publicly that he had no evidence whatsoever to back up his claims that Alliance for a Better Utah, Elevate Strategies, Josh Kanter, Taylor Knuth, or Gabrielle Finlayson were funded by China or the Chinese Communist Party. Furthermore, Fox News anchor Maria Bartiromo issued an on-air correction on June 26, 2026, clarifying that the network was aware of no evidence linking the named individuals or groups to Chinese interests. O'Leary also put out a social media retraction the month prior to the lawsuit being filed.

However, despite these retractions, the lawsuit proceeds. The plaintiffs believe the damage has already been done, arguing that the baseless accusations caused significant harm. The defendants, on the other hand, will likely argue that the swift corrections and retractions should prevent liability. This makes for a fascinating legal battle, highlighting the complexities of public discourse, media responsibility, and, of course, the consequences when public figures make potentially unfounded claims. It's a stark reminder that even a retraction doesn't always make a contentious issue simply disappear.