Gawker turns on Daulerio in Hogan sex tape case

December 4, 2016

It appears that Gawker Media, LLC is turning on former Editor in Chief A.J. Daulerio per an article in the Wall Street Journal.  In legal papers filed in the Gawker’s Chapter 11 bankruptcy case, the company cites to the Florida jury verdict that awarded Hulk Hogan $140 million as violating employment terms while Daulerio was with the company.

The company is seeking to sever its ties with Daulerio as it is rejecting his request that Gawker continue to pay his legal fees over the fight over the video.

After the judgment, Gawker and its founder Nick Denton filed for Chapter 11 bankruptcy.  Most of Gawker websites were sold at auction to Univision for $135 million.  In legal filings, Gawker argued that Daulerio was to blame and cited the belief that Daulerio maintain that the Hogan video stay online despite the former pro wrestler’s contention it be removed.

Hogan and Gawker have reached a settlement of the jury verdict but the parties are now looking to how to fund Hogan’s $31 million settlement.

The WSJ article suggests that the move by Gawker is a strategy for the company to force Daulerio to accept a settlement of terms to pay the Hogan settlement.  Daulerio is said to owe $100,000 as part of the payment for the settlement with Hogan.  Apparently, Daulerio has not signed off on the deal due to “how he can discuss Mr. Bollea’s case.”  Daulerio, who was individually named in the original lawsuit, has considered appealing the decision on his own.

Gawker creditors have until Monday to vote on the settlement plan.

Payout Perspective:

It will be interesting to see what happens on Monday.  It was clear that this was a possible outcome when Gawker filed for bankruptcy.  Despite defending Daulerio in the civil trial, they now are turning to the interests of its creditors in the bankruptcy case.  As an individual, it would be hard to see how Daulerio could still fund his own appeal of the Hogan judgment.  Will keep you updated.

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