Hungarian government admits wrongdoing, settles lawsuit brought by Atlatszo against Sovereignty Protection Office

The Hungarian government has acknowledged that the now-defunct Sovereignty Protection Office violated the reputation of investigative journalism outlet Atlatszo by publishing false accusations against it. The Ministry of Justice, acting as the office’s legal successor, has agreed to pay HUF 3.8 million in damages and cover legal expenses. The settlement, approved by the Budapest Metropolitan Court on 15 October 2026, brings an end to a two-year legal battle that began after the government agency set up by the previous government accused Atlatszo of espionage, disinformation and serving foreign interests.

The dispute dates back to June 2024, when Hungary’s Sovereignty Protection Office, headed by Tamás Lánczi, launched an investigation into Atlatszo. The agency claimed that the investigative news outlet, which also receives funding from foreign sources, might be engaged in activities influencing voters’ political preferences.

We challenged the legitimacy of the investigation from the outset, arguing that Atlatszo conducts independent investigative journalism rather than political campaigning. Nevertheless, the office published a report containing serious allegations against our organisation.

In a Facebook video based on the report, published on 31 October 2024, the agency accused Atlatszo of conducting intelligence-gathering and disinformation activities, systematically abusing freedom of information requests, concealing contributions to the Sargentini Report on Hungary, and operating primarily on funding from foreign governments, the European Commission and organisations associated with George Soros.

The video also claimed that Atlatszo had uploaded more than 9,000 Hungarian documents to American servers and that its activities seriously undermined Hungary’s sovereignty. In January 2025, we filed a civil lawsuit against the Sovereignty Protection Office, arguing that these accusations were false and damaging to our reputation.

Our lawsuit explained that obtaining information through freedom of information requests is a constitutionally protected right, not espionage. We also disputed the agency’s allegations concerning our financing, our contributions to the Sargentini Report and the publication of government documents in international databases.

Court initially ruled in Atlatszo’s favour

During the proceedings, the Sovereignty Protection Office argued that its allegations were opinions, assessments and conclusions rather than factual statements requiring proof.

In November 2025, the court heard testimony from Miklós Sári, the agency’s senior analyst responsible for the report. We published a detailed account of his testimony, including a video recording of the hearing.

On 4 December 2025, the Budapest Metropolitan Court ruled in Atlatszo’s favour on all disputed allegations. The court found that the agency had violated our right to a good reputation and ordered it to pay damages and provide public redress.

According to the full judgment, which we subsequently published, freedom of information requests are a fundamental constitutional right rather than an unlawful activity. The office had also failed to substantiate its allegations that Atlatszo engaged in disinformation.

However, the agency appealed the ruling. On 28 May 2026, the Budapest Court of Appeal overturned the first-instance judgment and ordered a retrial. The appellate decision did not establish that the agency’s accusations were true. Instead, the original judgment was set aside because of procedural deficiencies that prevented a substantive appellate review.

The abolished agency’s legal successor acknowledges the violations

The political situation in Hungary changed significantly while the lawsuit was ongoing. Following the change of government in May 2026, the new administration led by Péter Magyar’s Tisza Party initiated the abolition of the Sovereignty Protection Office.

Under Act XXIV of 2026, the agency was dissolved, and the Ministry of Justice became its general legal successor. Consequently, the ministry replaced the former agency as the defendant in the renewed proceedings.

Rather than continuing the litigation, the ministry reached a settlement with Atlatszo, expressly acknowledging that the Sovereignty Protection Office had violated our right to a good reputation through six false statements published in its report and video.

Under the agreement, the Ministry of Justice must publish a statement acknowledging the violation prominently on its official website. It has also agreed to pay Atlatszo HUF 3.8 million in compensation for non-material harm and further millions in legal costs.

The parties requested that the Budapest Metropolitan Court approve the settlement and terminate the renewed proceedings. The court approved the agreement on 15 October 2026, formally bringing the case to an end.

For Atlatszo, the significance of the settlement goes beyond financial compensation. After nearly two years of legal proceedings, the Hungarian state has formally acknowledged that an agency established under the previous government made false accusations against an independent investigative newsroom and thereby violated its reputation.

The agreement also demonstrates that abolishing a government institution does not eliminate the state’s responsibility for legal violations committed by that institution.

Based on Atlatszo’s original Hungarian report, published on 15 October 2026.