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D.C. appeals court tosses $130K judgment against James O'Keefe, calls damages award a First Amendment violation

Ben Marquis,
 August 23, 2026

A three-judge panel on the D.C. Court of Appeals has thrown out a $130,000 damages judgment against James O'Keefe and Project Veritas, ruling that the jury's award punished the defendants for publishing a news story and therefore violated the First Amendment. The decision hands O'Keefe one of the most consequential legal wins of his career and sends a signal about the constitutional boundaries courts must respect when undercover journalism lands in a courtroom.

The case centered on "Rigging the Election," an undercover video series released during the 2016 presidential campaign. The footage, captured in part by a Project Veritas intern named Alison Maass, purported to show Democratic operatives discussing plans to incite violence at Trump rallies. A lawsuit followed, and a jury eventually awarded $130,000 in damages against O'Keefe and his organization. But the appeals court found that verdict could not stand.

The ruling and what it turns on

Circuit Judge Karen LeCraft Henderson authored the opinion. Her conclusion was direct, as the Washington Examiner reported:

"The principal question in this appeal is whether the jury's damages award violated the First Amendment by punishing the defendants for publishing a news story. We conclude that it did."

The panel acknowledged that some of the footage was gathered through fraudulent means. Maass, the undercover intern, misrepresented herself to gain access. But the court drew a critical distinction: the video as published relied primarily on "lawfully obtained" footage. The First Amendment, the panel held, protects the act of publishing even when portions of the underlying newsgathering involved deception.

That distinction matters. Undercover journalism has a long history in American media, from network television stings to hidden-camera investigations by legacy outlets. But legal challenges to the practice have mounted in recent years, and the line between protected publication and actionable fraud remains contested. This ruling reinforces that courts cannot use damages awards to punish the publication itself when the material is substantially lawful in origin.

O'Keefe claims vindication for undercover press

O'Keefe framed the decision in sweeping terms. He told the Washington Examiner:

"This case has profound impact on the First Amendment and undercover journalism at large. The right of an undercover journalist to misrepresent themselves in order to bring you the truth."

Whether one considers O'Keefe a journalist or an activist, the court treated the question as a press-freedom matter. The panel applied First Amendment doctrine to the publication of the video, not to the methods used to record it. That framing is the heart of the decision and the reason it carries weight beyond this single case.

The ruling arrives during a period of intensifying legal battles over press rights and government authority. Readers following Disney and ABC's lawsuit against the FCC over alleged retaliation for critical coverage will recognize the same constitutional fault line: when does government action, or a court judgment, cross from legitimate regulation into punishing speech?

A broader pattern of legal pressure

The appeals court victory does not erase the legal turbulence O'Keefe and Project Veritas have faced on other fronts. The organization has been entangled in federal proceedings stemming from the alleged theft of Ashley Biden's diary in 2020.

Two Florida residents, Aimee Harris and Robert Kurlander, discovered and later sold the diary and other personal items to Project Veritas for $20,000 each. Both individuals pleaded guilty to conspiracy charges. The FBI raided the residences of several Project Veritas members in 2021, including O'Keefe's home, and seized materials that became the subject of a separate court fight.

U.S. District Judge Analisa Torres rejected Project Veritas' First Amendment arguments in that case, ruling that over 900 documents from the raids could be turned over to criminal prosecutors. AP News reported that Torres called the organization's constitutional claims "inconsistent with Supreme Court precedent." Project Veritas' lawyers pushed back, arguing that the investigation was driven by the diary's authorship rather than any genuine criminal concern.

Their attorneys stated: "It is impossible to imagine the government investigating an abandoned diary (or perhaps the other belongings left behind with it), had the diary not been written by someone with the last name Biden."

Attorney Jeffrey Lichtman added a pointed observation: "The government isn't seeking any prison time for either defendant who claims to have stolen the Ashley Biden diary, which speaks volumes in our minds."

The New York Times and the privilege fight

O'Keefe's legal entanglements also drew in the New York Times. In a separate proceeding, Judge Charles D. Wood of the Supreme Court of Westchester County ruled on Christmas Eve 2021 that the Times had obtained confidential legal memos belonging to Project Veritas and that those memos were protected by attorney-client privilege. Wood ordered the Times to return and destroy all copies within ten days.

The judge found that the Times obtained the memos through "irregular" means, though the Times itself acknowledged no "apparent bribery" was involved. Wood ruled that retaining the memos gave the newspaper an unfair advantage in its ongoing defamation litigation against O'Keefe. Breitbart reported that the ruling drew sharp reactions from legal commentators.

George Washington University law professor Jonathan Turley highlighted what he called a double standard, noting the contrast between how O'Keefe and Times publisher A.G. Sulzberger would be treated by the FBI for similar conduct. "That is precisely the problem," Turley said.

The Times editorial board fired back, insisting that press ethics should remain in the hands of journalists. "[T]he First Amendment is meant to leave those ethical decisions to journalists, not to courts," the board wrote. The tension between privilege protections and press freedom in that dispute mirrors the broader question the D.C. appeals court addressed in overturning the $130,000 judgment: where does the Constitution draw the line?

That question has surfaced repeatedly in recent months across different areas of law. A landmark Supreme Court ruling striking down coordinated spending limits raised parallel concerns about government restricting constitutionally protected activity under the guise of regulation.

What the D.C. ruling changes

The practical effect of the appeals court decision is straightforward: O'Keefe and Project Veritas no longer owe $130,000. But the doctrinal effect runs deeper. The panel's reasoning establishes that a damages award cannot function as a penalty for the act of publishing lawfully obtained material, even when the broader investigation that produced it included deceptive tactics.

Courts have long wrestled with the tension between newsgathering methods and publication rights. The Supreme Court's decision in Bartnicki v. Vopper (2001) held that a media outlet could publish illegally intercepted communications if it played no role in the interception and the material concerned a matter of public interest. The D.C. panel's reasoning in the O'Keefe case fits within that tradition, though it applies it to undercover video rather than wiretapped phone calls.

The decision does not immunize all undercover tactics. The court acknowledged that Maass obtained some footage through fraud. A separate claim based on the fraudulent newsgathering itself, rather than the publication, could theoretically survive. But the panel made clear that the jury's $130,000 award was tied to the publication of the video, and that is where the First Amendment drew the line.

Recent federal court rulings have shown a willingness to check government and institutional overreach across the political spectrum. A federal judge's decision to toss indictments over questions of prosecutorial authority reflects a similar judicial impulse: procedural rights and constitutional limits apply even when the underlying conduct is controversial.

The stakes for undercover journalism

O'Keefe left Project Veritas in 2023 and founded a new organization, O'Keefe Media Group. His legal battles have followed him, but this appellate win gives him a precedent he can point to in future disputes. For conservative media figures who rely on undercover methods, the ruling offers a measure of protection that did not exist in binding D.C. Circuit precedent before.

For critics, the decision raises concerns about accountability for deceptive newsgathering. But the court's opinion is narrow in one important respect: it addresses damages, not liability for the underlying conduct. The distinction between punishing publication and punishing fraud in the reporting process remains intact.

The full details of the appeals court's ruling confirm that the panel treated this as a straightforward application of existing First Amendment doctrine to a politically charged set of facts. The judges did not create new law so much as enforce old law in a context where a jury verdict had crossed a constitutional boundary.

Constitutional protections for the press do not depend on whether the press is popular, polished, or polite. They depend on whether the government, or a court, is using its power to punish speech. The D.C. appeals court said that is exactly what happened here, and it put a stop to it.

About Ben Marquis

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