A) Knowledge that the statement was false, or b) Reckless disregard as to its truth or falsity. - It must be shown that the defendant was subjectively aware that the statement he published was false or that he was subjectively reckless in making the statement. Reckless” conduct is not measured by a reasonable person standard or by whether a reasonable person would have investigated before publishing. There must be a showing that the defendant in fact (subjectively) entertained serious doubts as to the truthfulness of his publication. It is not enough that the defendant is shown to have acted with spite, hatred, ill will, or intent to injure the plaintiff. Assuming the defendant was in fact negligent in ascertaining the truth of what it published—but still it had no actual knowledge of the falsity, nor was it guilty of reckless disregard for the truth—damages can be recovered but are limited to the “actual injury” sustained by the plaintiff; i.e., presumed damages are prohibited New York Times v. Sullivan