A Manhattan federal judge Tuesday approved a bankruptcy plan for Gawker that includes a $31 million payment to Hulk Hogan, $1.5 million to settle four other lawsuits, and protection for former writers against future legal claims.
“The company got murdered,” said ex-Gawker reporter Jordan Sargent. “That we have these protections is a moderate victory.”
According to The NYPost, The plan indemnifies Gawker’s former writers against potential lawsuits over articles published before the company was sold to Univision in August for $135 million.
Hogan forced Gawker into bankruptcy in June when he tried to collect on a $140 million award from a Florida jury after the site posted a video of him having sex with his then-best friend’s wife.
The March invasion-of-privacy verdict included $55 million in economic damages, $60 million for
Lawyer Gregg Galardi, who represents the bankrupt Web site, said the $31 million Hogan settlement “was very favorable” because it’s only a fraction of the $140 million award. Hogan is expected to receive the money by the end of the year.
“While the company believes it could still prevail on appeal,” that could cost up to $10 million in legal fees, Galardi said.
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