Plaintiff was appointed as a bankruptcy trustee. Defendant published blog posts on several websites “accusing [plaintiff and his financial group] of fraud, corruption, money-laundering, and other illegal activities in connection” with the bankruptcy of a company. According to the opinion, defendant “has a history of making similar allegations and seeking payoffs in exchanged for retraction.” Plaintiffs sent defendant a cease and desist letter, but she continued posting allegations, and a defamation suit ensued. A jury found in favor of plaintiffs, awarding $2.5 million in damages. The Ninth Circuit reversed and remanded the matter for a new trial because the blog addressed a matter of public concern and the district court should have instructed the jury that it could not find defendant liable for defamation unless if found that she acted negligently, and “also should have instructed the jury that it could not award presumed damages unless it found that [defendant] acted with actual malice.” (Obsidian Finance Group, LLC v. Crystal Cox (Ninth Cir.; January 17, 2014) 740 F.3d 1284.)
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