Louis Bacon Wins Defamation Case Against Ex-Fashion Mogul Nygard
(Bloomberg) — Billionaire hedge fund founder Louis Bacon won his decade-old court claim that Finnish-Canadian fashion mogul Peter Nygard defamed him by saying the financier was a murderer, drug trafficker, arsonist, insider trader and Ku Klux Klan member.
“Mr. Nygard has failed to present any evidence as to whether the statements made by Mr. Nygard are truthful,” Richard G. Latin, a state court judge in Manhattan, wrote in a decision Monday that resolved the matter in Bacon’s favor.
The verdict was the latest turning point in a bitter years-long feud between the two men, former next-door neighbors in the Bahamas’ exclusive Lyford Cay community, that has included more than a dozen lawsuits in New York, London and the Bahamas. In the defamation lawsuit, Bacon alleged that Nygard and his companies orchestrated a smear campaign that included “outrageous lies” in online videos and public statements.
Peter Sverd, who represented Nygard in the defamation case, said his client was “disappointed in the verdict” and plans to appeal.
Nygard, 84, is serving an 11-year prison sentence in Canada for sexual assault. He faces additional charges in Canada and is reportedly facing racketeering and sex trafficking charges in New York, US.
U.S. prosecutors allege Nygard used the resources of his company, Nygard International Partnership, to help him control women through surveillance and physical restraint. According to the indictment, Nygard hosted “pamper parties” in California and the Bahamas where guests were entertained with food, drinks and spa treatments.
A court-appointed arbitrator awarded Bacon $69.203 million in damages against Nygard in 2023, citing “overwhelming” evidence of “a deliberate plan by Nygard to destroy Bacon personally and professionally.” That award was reversed on appeal the following year, when an appeals court ruled that Nygard was not properly served with court papers while in prison.
Judge Latin will likely schedule a hearing to determine the amount of damages awarded to Bacon.
In his ruling, Latin found Nygard liable for a form of defamation that includes false statements that accuse someone of a serious crime or injure the person in his or her job or profession. As a result, Bacon will not need to prove specific harm to his reputation or business in order to receive a monetary judgment.
The case is Bacon v. Nygard, 150400/2015, NY State Supreme Court, New York County (Manhattan).
–With help from Chris Dolmetsch.
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