Author Ryan Holiday recently published a book on one of the most salacious conspiracies of modern time. His book is called, “Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue” and I highly recommend it.
Here are the players in this highly acclaimed case:
Peter Thiel: He is a technology investor and an entrepreneur. Thiel made his fortune as a founder of PayPal and invested half-a-million dollars into Facebook.
Hulk Hogan: Former professional wrestler. His government name is Terry Bollea.
Gawker Media: A New York-based gossip and entertainment company. It owns Valleywag, a now-defunct tech news website.
Nick Denton: Founder of Gawker.
Owen Thomas: Gossip blogger for Valleywag who, at the time the article was published, had over a decade of reporting experience.
Here’s what happened.
Gawker wrote a blog post that was barely 400 words long outing billionaire Peter Thiel as a homosexual.
The article was written by a gossip blogger named Owen Thomas for Valleywag. It was published on December 19, 2007 at 7:05 PM under the attention-getting headline: “Peter Thiel is Totally Gay, People.”
This incensed Mr. Thiel, whose privacy was invaded.
Fast forward. Gawker releases excerpts of a secretly recorded tape of Mr. Bollea having sex with his best friend’s wife. The tape, which came to be known as the “Hulk Hogan sex tape” was eventually stolen and leaked to a reporter who published it.
Hulk Hogan wanted to sue. But he couldn’t afford it. So Peter Thiel funded the lawsuit to retaliate against Gawker for violating his privacy.
Here’s where it gets interesting.
No one knew Peter Thiel was funding the lawsuit. Not even Hulk Hogan, who was told “a rich businessman” was assisting.
With Thiel’s backing, Hulk Hogan and his attorney, Charles Harder, sued Gawker Media along with Nick Denton, its founder and A.J. Daulerio, its former editor-in-chief for invasion of privacy, intentional infliction of emotional distress, and a violation of Florida’s Security of Communications Act.
At the time, Gawker thought they were just up against Hulk Hogan, “a single digit millionaire.”
This is where the conspiracy takes place.
Five years lapses…
All the while, Gawker is wondering, “When will Hulk quit?” When will he run out of money?
They have no idea a billionaire is footing the bill.
The case eventually goes to trial in Pinellas County, FL and a six-person jury returns a staggering verdict in favor of Hulk Hogan in the amount of $115 million—a figure that well exceeds the $ 100 million that Hulk asked for and that undoubtedly will send shock waves to online publishers despite the likelihood of an appeal by Gawker.
How likely is it that this astounding figure will hold up? Now is as good a time as any to discuss a theory under the law known as remittitur.
Remittitur is a ruling by a judge (usually upon motion to reduce or throw out a jury verdict) lowering the amount of damages granted by a jury in a civil case. Usually, this is because the amount awarded exceeded the amount demanded. This is likely to be Denton’s argument on appeal since the amount that the jury awarded was $ 15 million greater than the amount that Hogan demanded. Even when the amount awarded does not exceed the amount demanded, remittitur can still be used by the losing party to reduce awarded damages under a theory that the jury award is excessive, as in, “it shocks the conscience.”
If the motion is granted, the plaintiff may either accept the reduced verdict or submit to a new trial restricted to the matter of damages.
Circling back to the case, Nick Denton eventually went broke and Gawker shut down.
And then one day… Author Ryan Holiday gets an email from Peter Thiel. And in the same period, he starts talking more to Nick Denton…
The idea for the book is born and Ryan realizes that he’s the one that is meant to write it since he is the only person with access to the two power players involved: Nick Denton and Peter Thiel.
He makes a move and writes, “Conspiracy: Peter Thiel, Hulk Hogan, Gawker, and the Anatomy of Intrigue.”
In the book, Mr. Holiday brilliantly shows step-by-step how the conspiracy was hatched through the lens of the people who pulled it off. He also shows the consequences and the causes.
I highly recommend it!