Donald Trump Sues New York Times, NYT Stock Plummets 2% in Market Shakeup

Trump's legal broadside against the Times sends shockwaves through media stocks—proving once again that in traditional markets, lawsuits move needles faster than earnings reports ever could.

The lawsuit alleges defamation over the Times' coverage of Trump's business dealings, triggering immediate investor panic. NYT shares tanked 2% on the news—a classic case of old-school finance reacting to old-school drama.

Meanwhile in crypto land, decentralized media platforms keep buzzing along, utterly unfazed by the legal theatrics of legacy institutions. No CEO depositions, no stock plunges—just pure, unadulterated information flow.

Traditional media's loss could be crypto's gain as investors seek alternatives untouched by political litigation risk. Because let's be honest—when was the last time a defamation suit affected Bitcoin's hash rate?

Trump Lawsuit Sends NYT Stock Down

In a Truth Social post announcing the suit, Trump accused the paper of a “decades-long method of lying about your Favorite President (ME!), my family, business, the America First Movement, MAGA, and our Nation as a whole.” “Defendants simply ignored their breach of journalistic ethics because the Book and the Articles WOULD further the goals of the New York Times and its backers in the Democrat Party,” he added in the suit.

The New York Times said in a statement that the lawsuit “has no merit.” “It lacks any legitimate legal claims and instead is an attempt to stifle and discourage independent reporting,” a spokesperson for the Times said Tuesday. “The New York Times will not be deterred by intimidation tactics.” Still, investors seemed concerned and sent the shares down in a rare move.

Indeed, the New York Times’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Today’s dip reveals that investors consider this news meaningful, and could bleed into NYT stock over the next days if the lawsuit snowballs. The New York Times (NYT) is up 10% on the stock market since the beginning of the year. At $57.54 per share, it is trading close to its 52-week high of $61.95 from August 2025.