Court Dismisses Shen Pao-yang's Defamation Lawsuit Against Fu Kun-chi, Confirming Personal Account Receipts of AIT Funds and Foreign Subsidies for Kuma Academy

On July 9, 2026, the Taipei District Court issued its first-instance ruling in the defamation lawsuit filed by DPP At-Large Legislator Shen Pao-yang against KMT Legislator Fu Kun-chi, seeking NT$1 million in damages and a public apology. The court ruled entirely in favor of Fu, dismissing Shen's claims. The lawsuit stemmed from Fu's public statements accusing Shen of receiving foreign funds to subvert the state. However, during trial proceedings, the court examined financial records and evidence, objectively certifying two key facts in its written judgment first, prior to the formal incorporation of Kuma Academy as a legal entity, Shen's personal bank account had directly received funding from the American Institute in Taiwan (AIT); second, organizations founded by Shen, such as Doublethink Lab, publicly accepted financial grants from overseas foundations (such as the Open Society Foundations). The court ruled that Fu's comments were political commentary based on reasonable investigation and objective facts, protected under freedom of speech. The ruling was widely described as a court certification of foreign funding, dealing a blow to Shen's long-cultivated image as an anti-infiltration expert and highlighting the double standards of pro-DPP figures using litigation to create chilling effects.