Peter Thiel vs Gawker

[garbon]

Just learned that Peter Thiel is trying to become a Trump delegate.

Why would you be excited about that?

[The Minsky Moment]

Given that Trump came out strongly for stricter libel and defamation laws, that news is not reassuring.

[viper37]

Ah, so, there isn't anything as lawyer firms calling prospective clients once they're named by certain medias and offering them to sue on their behalf for a share of the settlement?

Most states rules prohibit that kind of solicitation.

ok, soliciation is forbidden for most US jurisdiction.  And truth is a defense, so, that's two things different with Canada&Quebec.  But they do advertise fixed rates taken on the settlement (25-40%) you receive and the time it takes to get such settlement.  That means to me that lawyers are pretty confident to win in most cases, so when there are real prejudices, accessibility to justice is not a problem for the "little guy against the big media".

[Barrister]

Trial judge refuses a stay on judgment pending appeal.  Gawker places itself in bankruptcy in response.

http://www.politico.com/media/story/2016/06/gawker-files-for-bankruptcy-to-protect-assets-from-hogan-004593

[Martinus]

Trial judge refuses a stay on judgment pending appeal.  Gawker places itself in bankruptcy in response.

http://www.politico.com/media/story/2016/06/gawker-files-for-bankruptcy-to-protect-assets-from-hogan-004593

[The Minsky Moment]

Trial judge refuses a stay on judgment pending appeal.  Gawker places itself in bankruptcy in response.

http://www.politico.com/media/story/2016/06/gawker-files-for-bankruptcy-to-protect-assets-from-hogan-004593

On a money judgment usually courts have limited discretion to stay enforcement.  A bankruptcy filing provides an automatic stay.  Also in bankruptcy unpaid claims accrue interest at the federal rate, typically lower than the state rate.

[Martinus]

Judge blasts Nick Denton for lying about Gawker stock value
By Julia Marsh July 29, 2016 | 4:27pm | Updated

A Florida judge said Gawker founder Nick Denton "misled" the court about the value of his company — and punished him by ruling that Hulk Hogan could start seizing his assets.

Denton told Judge Pamela Campbell in June that Gawker Media Group, Inc. was worth $276 million.

He didn't have the cash to post the $50 million bond required to appeal the $140 million verdict awarded to Hogan, so he offered his stock in Gawker instead.

Denton said that his 30 percent stake in Gawker was worth $81 million.

The $81 million figure was "used to give [Hogan] and this court the impression that the stock had significant value," Campbell says in a decision released Friday.

Based on that representation Campbell agreed to the offer—only to learn later that the stock was worth closer to $30 million.

"Mr Denton...misled this court in connection with [his] pledge of Gawker Media Group, Inc. stock by concealing material information about the value of that stock which a reasonable person, under the circumstances, should have disclosed," Campbell says in the order.

What Denton did not disclose is that he'd already prepared to file bankruptcy on behalf of Gawker and had pledged to sell the company for just $90 million.

That sale price meant that Denton's share was worth under $30 million—not the $81 million he cited to the court.

"These are all material facts affecting the value of the stock Mr. Denton and Mr. Daulerio pledged," Campbell says in the ruling.

"The integrity of the civil litigation process depends on truthful disclosure of facts. Revealing only some of the facts does not constitute truthful disclosure," she writes.

In Friday's ruling the judge found that the new, $30 million value of Denton's stock "is not adequate" for the bond.

So she ruled that Hogan can start collecting on the jury award.

Hogan's attorney, David Houston, said his client "will do all within his power to enforce his judgment against" Denton.

Denton plans to ask an appeals court for an emergency stay of Judge Campbell's ruling.

"I have to say that I think the court really got this one wrong," Denton said. "The $81 million company valuation the court relied on was Hogan's valuation. We told the court they did not know what the company's shares would be worth.

"There was no misrepresentation," he said.

[The Minsky Moment]

The $90 million is not a sale price, it was a stalking horse bid in the bankruptcy case.  Denton's affidavit placed no value on the stock at all.  His lawyers submitted a brief that pointed out that Bollea had claimed the $81 million valuation for the purposes of the punitive damages stage.  The brief says flat out that Denton and Gawker disputed the valuation and doubt its accuracy.

The court's opinion isn't up yet - I would be curious to see the reasoning.

[Baron von Schtinkenbutt]

Ah, so, there isn't anything as lawyer firms calling prospective clients once they're named by certain medias and offering them to sue on their behalf for a share of the settlement?

Most states rules prohibit that kind of solicitation.

Does that only apply to specific people?  I got a crapload of solicitations about the VW diesel thing because I own one.  I suspect, though, that they were just sending mass mailings to every address associated with a VW diesel purchase.  Does that make it equivalent to those mesothielioma commercials encouraging people to call if they are affected?  Where is the line between encouraging and directly soliciting?

[The Minsky Moment]

Does that only apply to specific people?  I got a crapload of solicitations about the VW diesel thing because I own one.  I suspect, though, that they were just sending mass mailings to every address associated with a VW diesel purchase.  Does that make it equivalent to those mesothielioma commercials encouraging people to call if they are affected?  Where is the line between encouraging and directly soliciting?

In a US class action, lawyers are typically appointed for entire class after court review once the class is certified by the Court.  Class counsel then represents the entire class of affected persons unless there is an opt-out.  So they can send out mailings to the whole class (and may be required to).

[Zanza]

In a case like VW where VW basically had the DoJ as opponent, would the lawfirms that represent the class action still get a sizeable share of the money? All the hard work was done by the DoJ.

[Baron von Schtinkenbutt]

Does that only apply to specific people?  I got a crapload of solicitations about the VW diesel thing because I own one.  I suspect, though, that they were just sending mass mailings to every address associated with a VW diesel purchase.  Does that make it equivalent to those mesothielioma commercials encouraging people to call if they are affected?  Where is the line between encouraging and directly soliciting?

In a US class action, lawyers are typically appointed for entire class after court review once the class is certified by the Court.  Class counsel then represents the entire class of affected persons unless there is an opt-out.  So they can send out mailings to the whole class (and may be required to).

The solicitations I got were specifically encouraging me not to join a class action and to sue individually.  I don't recall ever getting anything about a class action suit.

[The Minsky Moment]

The solicitations I got were specifically encouraging me not to join a class action and to sue individually.  I don't recall ever getting anything about a class action suit.

That's odd.  What state are you in?

[Baron von Schtinkenbutt]

That's odd.  What state are you in?

Texas.

Now I'm wishing I had saved some of them.

[The Minsky Moment]

Hmm apparently direct mail solicitation is allowed.  Even in NY with some exceptions.  Not an area where I have much personal experience.