Gawker founder Nick Denton has succumbed to an unfortunate truth: He will have to file for bankruptcy in order to stop Terry “Hulk Hogan” Bollea from seizing his assets. (FishbowlNY)
After a judge upheld the $140.1 million verdict against Gawker, including $10 million due from Denton personally, Gawker filed its own bankruptcy petition with plans to sell the company. (THR / THR, Esq.)
Filing for bankruptcy puts a stay on claims from creditors, including court judgments, meaning Bollea will not be able to collect his award. Gawker is appealing the judgment made by a jury that awarded Bollea $115 million in damages and $25 million more in punitive damages. Denton is personally liable for $10 million and jointly liable for $115 million. (NYT)
A.J. Daulerio, a former editor of Gawker.com, is also expected to file for bankruptcy. Hogan sued Denton, Gawker and Daulerio in 2012, after the news site published a short excerpt of one of Hogan’s sex tapes. Peter Thiel, a billionaire technology venture capitalist who dislikes Gawker, secretly funded Hogan’s lawsuit against the company. (Politico Media)
Denton’s personal bankruptcy follows a final blow in a string of legal defeats, which left him with little choice but to seek court protection. On Friday, a Florida judge denied Denton’s emergency request for protection from the judgement. Gawker’s founder said Monday was a “bitter day for me” but that he remains hopeful about a second act for his company. (WSJ)