The Wall Street Journal reports that Gawker and Hulk Hogan are in settlement discussions over Hogan’s huge trial victory which caused the personal bankruptcy of Nick Denton.
It was anticipated that A.J. Daulerio was to file for personal bankruptcy as well.
In March, a Florida jury awarded Hogan $140.1 million including $25.1 million in punitive damages. Despite the fact that the judge presiding over the jury trial advised the jury to not award punitive damages that would bankrupt the defendants. Nevertheless, the jury awarded the damages to the former pro-wrestler. The court determined that Gawker had $48.7 million in gross revenues las year and a net worth of $83 million.
Although Gawker is appealing the trial court decision, that would not stop Gawker’s Chapter 11 bankruptcy proceeding. The company filed for protection when the trial court judge upheld the jury verdict this past May.
Denton listed his stake in Gawker and his apartment in Manhattan as his only two assets. The combined value he estimates is less than $50 million.
Payout Perspective:
While the settlement discussions have been ongoing, they have led to nowhere. One would think that Hogan might take less than the jury award to cut off the constant waterfall of legal fees that he will surely have to pay at some point. For Gawker, settlement would not stop a bankruptcy auction of the company. But, it could mean that they would have money left over after the sale.
GOOD JOB! Now he made up for all the money his ex-wife took from him. Smart move.