Substack scores legal win

• In some cases, users have cited that fee as the reason for leaving the platform.
• Stein's case shows that for smaller publications and individual writers, especially those who cover sensitive topics or hold people in power to account, the expediency with which they can access those shared services makes a difference.
• "It would've been much harder to find a lawyer to defend me pro bono," Stein told Axios in an interview. He estimates Substack covered tens of thousands of dollars' worth of legal costs.

Zoom in: The case, filed in the U.S. District Court for the Eastern District of Virginia, alleged Stein defamed Bass by falsely reporting that he had been "effectively fired" as head of the CIA's Office of Medical Services in 2021 for poor management.

• Stein, who has been publishing his newsletter on Substack since 2020, said he quickly reached out to the platform's co-founders Chris Best, Hamish McKenzie and Jairaj Sethi. They promptly responded, offered two lawyers to represent him pro bono and said Substack would pick up their costs.
• Last month, Stein and his lawyers faced Bass' counsel in court. The judge dismissed Bass' case but left open a 14-day window for his team to amend and strengthen their complaint.
• After the 14 days passed with no amended complaint, Stein's lawyer said she received a notice from the court that the case was dismissed with prejudice, which means Bass is precluded from making any future defamation claims against Stein based on his article.

Zoom out: Stein's case is the second one Substack Defender has won since the program launched six years ago, but the first major federal suit.

• The company won an anti-SLAPP case in a California state court last year that was filed against it and one of its writers, reporter Jack Poulson.

The big picture: More creator platforms, including Beehiiv, are offering journalists legal resources, including pre-publication legal review, errors and omissions insurance coverage, and access to ongoing legal counsel, as defamation suits against journalists rise.

• The Trump administration has a track record of using lawsuits to target journalists and news organizations, but many of those cases have proven unsuccessful. Several are still ongoing.

What to watch: Earlier this year, FBI director Kash Patel sued The Atlantic and one of its reporters, alleging they defamed him when the outlet published a story alleging he has an excessive drinking habit and a pattern of "erratic" behavior.

• Last week, The Atlantic asked a judge to toss the lawsuit, calling it "an assault" on the First Amendment.