Angel investor Caterina Fake gets real on Peter Thiel:
Generally, people avoid frivolous lawsuits because it often exposes them to as much scrutiny as those they sue, so what is significant about this case is that by funding Hogan behind the scenes, Thiel could get his revenge, escape exposure, and influence the outcome of the case. Hogan’s lawyers made decisions against Hogan’s best interests, withdrawing a claim that would have required Gawker’s insurance company to pay damages rather than the company itself–a move that made Nick Denton, Gawker Media’s founder and CEO, suspect that a Silicon Valley millionaire was behind the suit. Gawker Media may or may not survive the suit in which Hogan was handed down a judgement of $140 million, which the publisher has appealed.
My hope is that the high profile of this case will hasten legal reform. The ethical dodginess of this type of funding is well known–after all champerty was once illegal.
Further reading (via Fake’s post):
Gawker-Thiel-Hogan lawsuit article on Forbes
Why Denton thought Thiel was behind the lawsuit article on re|code
Arms Race: Law Firms and the Litigation Funding Boom article in American Lawyer
