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Lawsuits Push Gawker’s Nick Denton to Brink of Bankruptcy

Submitted by jhartgen@abi.org on

Lawyers for Gawker Media LLC say that founder and Chief Executive Nick Denton will join his media company in bankruptcy unless a judge steps in to block litigation from former professional wrestler Hulk Hogan and his billionaire backer, the Wall Street Journal reported today. Gawker’s lawyers said in court papers filed on Monday that the personal bankruptcy filing “would undoubtedly occur” if a judge rejects Gawker’s bid for an injunction that would halt legal action from Terry Bollea, the wrestler’s real name, as well as others who have sued the embattled publisher. William Holden, Gawker’s chief turnaround officer, said in sworn testimony that Denton has already hired bankruptcy lawyers using a $200,000 loan from the company. Bollea won a $140 million judgment against Gawker earlier this year that ultimately pushed the company into chapter 11. The invasion-of-privacy suit was tied to a tape of Bollea having sex, which Gawker published in 2012. Denton is jointly liable along with another former Gawker employee for $115 million of the judgment and is personally liable for another $10 million.

Erin Andrews' Stalker Will Still Have to Pay Damages Despite Declaring Bankruptcy

Submitted by jhartgen@abi.org on

Filing for bankruptcy isn't going to save Erin Andrews' stalker, Michael David Barrett, from having to pay his portion of the $55 million that Andrews was awarded in a civil suit back in March, WUSA9.com reported yesterday. Bankruptcy Judge Trish Brown ruled that the damages awarded to Andrews are "non-dischargeable," and cannot be forgiven by declaring bankruptcy. The adjudication came in response to a motion filed by Andrews' attorneys seeking to prevent Barrett from shirking his financial responsibilities through a bankruptcy filing. Barrett pleaded guilty in 2009 to secretly taping Andrews getting undressed through her hotel room's peephole, and posting the video online. He was sentenced to two and a half years in prison and three years of probation for interstate stalking and ended up filing for bankruptcy in 2012, the year he was released from prison. In March, Barrett was ordered to pay 51 percent of the $55 million awarded to Andrews, while West End Hotel Partners, which owns the hotel where the clandestine videotaping took place, was ordered to pay the other 49 percent.