Hulk Hogan, who filed the privacy lawsuit that ultimately led to Gawker’s bankruptcy filing, may not see any of his $100 million-plus judgment if Gawker’s other creditors have anything to say about it.
According to the filing, Hogan is listed as an “unsecured” creditor with a “disputed claim” putting him at the back of the line of Gawker creditors who will benefit from the sale. The exact amount Gawker owes to secured creditors, like banks and investment firms, law firms and others is unknown but could be anywhere from $100 million to $500 million, according to sources.
Typically, judgments against a defendant are discharged in bankruptcy. But the case against Gawker involves an “intentional tort,” invasion of privacy. Because of the element of intent, Gawker can’t just wipe away the judgment with a Chapter 11 filing, so they’re listing Hogan as an unsecured creditor in hopes that a bankruptcy judge will take pity and pay out to others first.
They obviously want to make sure Hogan doesn’t taste his sweet revenge, even if they have to go completely out of business in the meantime. It’s a theory that just might work—especially since Hogan (and by extension, Peter Thiel, who financed Hogan’s lawsuit) is by far the biggest creditor. The bankruptcy court could elect to pay Gawker’s smaller creditors first.
If denied monetary compensation for their damages, Hogan and Thiel could get the last laugh (and poetic justice) by buying Gawker Media at auction.
