Scoop: RNC, Trump's former co-campaign manager preparing lawsuit against The Daily Beast

• They argue the article not only damaged LaCivita's reputation but also hindered the RNC's and the Trump campaign's ability to fundraise, according to letters sent by lawyers representing the RNC and LaCivita obtained by Axios.
• They cite media coverage of the story and ads run by the Lincoln Project, an anti-Trump political group, as examples of the story's impact.

What they're saying: The Daily Beast says it stands by its reporting but has conceded that its original report incorrectly cited $22 million from public FEC filings instead of $19.2 million. It has also updated the story to clarify that the money was paid to LaCivita's firm, not him personally.

• In a statement to Axios, a spokesperson said, "The Beast is committed to following the money and reporting accurately on Chris LaCivita's LLC, which received $19.2 million from the Trump campaign, the RNC and related super PACs, according to public records."
• "We stand by our journalism and will defend ourselves vigorously if necessary."

The big picture: The fight represents the willingness of those in Trump's orbit to leverage legal tools to go after media companies for reporting they believe is unfair or inaccurate.

• It also underscores the pressure Trump officials face working for Trump, who is paranoid about his staffers profiting off of his brand.
• The Atlantic reported last November that Trump was livid about the original Daily Beast report and fought with LaCivita over it. After the two made peace, The Atlantic reported that Trump told LaCivita, "You should sue those bastards."

Between the lines: Lawyers representing the RNC and LaCivita have penned three letters demanding retractions of the article over the past few months.

• The third letter, sent last week, demanded The Daily Beast retract a podcast about the story that referenced the original $22 million figure, according to a copy obtained by Axios.
• Shortly after receiving the letter, The Daily Beast deleted a podcast segment referencing the incorrect $22 million figure from its original article and added an editor's note saying it pulled the whole segment for "clarity of listening." The Beast "regrets the error," the note said, but "stands by its reporting on this subject, which appears elsewhere."

Catch up quick: The Daily Beast published the story last October originally titled "Trump In Cash Crisis — As Campaign Chief's $22m Pay Revealed." The article, citing FEC filings, suggested LaCivita personally received $22 million for work on Trump's 2024 campaign.

• The following month, lawyers on behalf of the RNC and LaCivita wrote a letter to The Daily Beast's lawyer arguing the piece was defamatory because it suggested LaCivita personally received the cash, instead of his firm, and that it neglected to explain that most of the cash was used to pay out vendors and pay for campaign advertising.
• In response, The Beast corrected its story and added an editor's note saying it had incorrectly interpreted the FEC filings to suggest $22 million went to LaCivita's firm, instead of $19.2 million. The article was also updated to make it clear that payments went to LaCivita's firm and not to him personally. The Daily Beast said it "regrets the error."
• The RNC and LaCivita penned another letter to The Daily Beast's lawyer shortly after in November, arguing the update wasn't enough and demanded a retraction. The editor's note, they argued, does not "remedy the overall defamatory messaging of the story — which depicts Mr. LaCivita as deceptively pocketing campaign money for his own personal gain and that he was and is on the verge of being 'fired' because of it."

• The Beast stood by its reporting. Communications between The Beast's lawyers and lawyers representing the RNC and LaCivita quieted until the third letter was sent in January.

Of note: While letters from lawyers on behalf of the RNC and LaCivita provide a breakdown of where the payments to LaCivita's firm went, The Daily Beast has not published those breakdowns because it has not obtained records that can confirm the validity of those payments.

• Lawyers representing the RNC and LaCivita argue the burden of providing that proof shouldn't fall on them, according to a source familiar with their thinking.
• If they were to sue and the case went to trial, those records, as well as other private communications from all parties involved, could surface during discovery.

Zoom out: While the legal standard for defamation is very high in the U.S., the reputational damage that can arise from defamation lawsuits can often pressure media companies to settle complaints.

• For example, ABC's $15 million defamation settlement with Trump last year shocked some legal experts who say ABC could have easily won the case.
• Reports suggest CBS has considered a settlement with Trump, who filed a $10 billion lawsuit against the network over allegedly doctoring its "60 Minutes" interview with Vice President Harris. CBS has filed motions to dismiss the complaints.

What to watch: The Daily Beast is trying to revive itself under a new ownership and management structure. The RNC and LaCivita don't expect The Daily Beast to be able to pay for any damages it could prove in court, which is why it's demanding a retraction and an apology, sources familiar with their thinking told Axios.

• A representative for the RNC and LaCivita pointed to the letters sent to The Daily Beast's lawyer when asked for comment.