Kimball Bradley, an executive at Reunion Industries, Inc., a publicly traded manufacturing company, sued Herbert Conner, an attorney who previously represented Reunion, over posts Conner allegedly made on a Yahoo! Finance Message Board that Bradley believed defamed him and cast him in a false light.

According to allegations in the complaint and other filings in the case, beginning in August 2005 and continuing through March 2006, Conner, using the alias “pun2dex,” posted numerous messages on the Yahoo! Finance Message Board designated for Reunion. Bradley alleges that Connor posted the following statements:

• On August 10, 2005, pun2dex stated: “As badly as this company is run, there is no shutdown. Richard Conway (of Lc Capital Masters) is in and will be heard. The company has fresh cash and is buying raw material. It will show an operating profit this quarter primarily due to the sales in China by its CPI sub. So long as the bond holders sit still, there could be some upside.”


• On September 1, 2005: “[Reunion] operates with a lockbox. It has no choice but to pay down the Bank debt. The Bondholders are stuck. The Bank takes all the excess cash and leaves only enough to buy material for production. Leadership is lacking, but well paid anyway. Check the identity of majority ownership in relation to the CEO and COO. I do not know how the outside directors sleep. There is a large lawsuit looming if someone should have the energy to file it.”


• On September 20, 2005: “Richard Conway is running Reunion. At last someone with an IQ. He paid hard cash. The banks have been backed off and RUN will report around 20 cents, if it so chooses in October, not from operations, but debt reduction. They can now buy raw steel and make product. The Oneida division will be sold and the cylinder and pressure vessel business will be advanced. Conway will have a $4.00 stock in 18 months.”


• On September 21, 2005: “I have followed the company for a very long time and read the filings. The Board is becoming concerned since Worldcom, in light of Sarbox, and well they should. . . .Kimball Bradley [Plaintiff] is still called COO, C E Bradley is still CEO, but the latter is CEO in paycheck only, and will soon be resigning at the request of Mr. Conway. The only way out for [Reunion] is to do what Conway suggests. Look for him to buy the junk bonds, reduce and control the debt and spur the growth of the profitable divisions. Check LC Capital Masters and Lampe, Conway Fund Group. Run (sic) needs management with a higher IQ than club handicap, with Conway, they get one, even if K. Bradley stays in as COO or even moves to CEO. He will not be calling the shots, except on the Golf Course.”


• On January 1, 2006: “. . .the story is all of failure since the young Bradley took over and will not stop until he is long gone. Until that day, this company and this stock will bounce a little, but is going nowhere.” On January 24, 2006: “If you are intent on paying salaries, you must sell something in the context of this company. Check the President, who is a member of the YPO. That means he was unable to be employed anywhere else, so his father made him president of this company so he could hang out with other young guys who were born on third base and think they hit a triple. This company is going nowhere. The next big thing will be a revolt of the bondholders or the banks. The shareholders will not be happy.”


• On January 25, 2006: “Our leader will never consider stepping aside to allow someone with the drive and intellect to run the company, so long as he has no other job prospects and strong cash needs. Instead of figuring out a way to make the company profitable, he sells assets to keep his check coming in. Go to GHIN.COM in Pennsylvania for Kimball Bradley and you will quickly see where the energy of management is spent, and only a small fraction of the rounds are posted so as not to upset his father. What a waste. The bondholders would be well advised to call his bluff, take control and get someone in who will put the company right. There are only a few assets left to sell, and at Kimball’s age he will need to sell them all just to pay his caddies.”


• On February 10, 2006: “The market cap on RUN is $9,500,000.00. Check what the company was worth when currect [sic] management took over. Even at that number you could not sell the stock and hold the current stock price. What a waste. How do those people sleep at night? Subtract the debt from a reasonable enterprise evaluation and you are below zero. A monkey could do better.”


• On February 22, 2006: “There is a [sic] apparent disconnect between blind optimism and business sense. A manager should get out of his office and go to customers, visit the plants and find new markets, new products and new businesses to bring a company above the profit line. He does not refinance a sea of debt over a five year reign, sell the divisions that earn a profit, add no new ones, shrink the revenue and raise his own salary, while buying a stadium box for his personal use with company funds, leave the office by 3:00 pm every weekday, work no weekends or evenings and pine for a job that makes ‘real money.’ This guy is rearranging the deckchairs on the Titanic, and only on a part time basis at that, while he works on his golfing handicap. We write in the hope that the board will wakeup and find a real CEO. Will recognize that it has a duty to the shareholders and not to an incompetnat [sic] young boy who cannot find a job on his own. . . .At Worldcom each boardmember was required to pay 20% of his personal net worth to the shareholders because they ignored guys like me. It will happen again.”


• On March 9, 2006: “This is just more rearranging of the deck chairs on the Titanic. K. Bradley probably thinks he did something meriting a huge bonus or perhaps a pay increase, but look at what has happened since he became COO. Straight down for revenues, profits and share price. I agree he probably can’t sleep at night, but he should still put in a full day, although with his ability, the company would do better without him. Still, Dad likes him, so he gets promoted, GO Figure. After all the comments about YPO, I did some research and have concluded that they are circle of jerks or a circle jerk. Our Boy fits right in.”

Based on these statements, Bradley asserted claims under Pennsylvania law for defamation, including defamation per se, and for false light.

In October 2007, Connor removed the case from Pennsylvania state court to federal court and filed a motion to dismiss the case, arguing that the claims were barred under Pennsylvania's one-year statute of limitations.

On November 29, 2007, the district court agreed and dismissed the lawsuit, rejecting the plaintiff's assertion that the "discovery rule" should have tolled the statute of limitations.

On March 13, 2008, Higher Balance Institute (HBI), which markets metaphysical products and education programs, filed a defamation lawsuit against the alternative news website Signs of the Times and its operators, the Quantum Future Group and Laura Knight-Jadczyk. Only Quantum Future Group has been served. HBI claims that employees of the Quantum Future Group posted defamatory statements about it on one of the website's forums. According to the complaint, these statements include allegedly false claims that HBI is a "front for pedophilia," that HBI is "conning the public," that meditation, as sold by HBI is an act of "falling into confluence with a psychopathic reality," and that HBI is a "cointelpro" organization. Cmplt. ¶23. (The Signs of the Times website uses the term "cointelpro" to refer to organizations that it claims perpetuate the ethos of a 1970s FBI counter intelligence program designed to quell domestic dissent.)

The complaint, filed in federal district court in Oregon, contains claims for defamation, false light invasion of privacy, and intentional interference with business relationships and prospective economic advantage. HBI seeks over $4 million in damages and an injunction. On April 25, 2008, Quantum Future Group moved to strike the complaint pursuant to Oregon's anti-SLAPP statute, Or. Rev. Stat. § 31.150.

Update:

4/25/2008 - Quantum Future Group filed motions to dismiss for failure to state a claim on which relief can be granted and for lack of personal jurisdiction.

5/19/2008 - Quantum Future School, Signs of the Times, and Knight-Jadezyk filed special motions to strike the complaint under Oregon's anti-SLAPP statute and joined Quantum Future Group's motion to strike. 

12/18/2008 - The district court granted the defendants' motions to strike the complaint under Oregon's anti-SLAPP statute. The court's decision relied in part on section 230 of the Communications Decency Act.

06/18/2009- The court granted in part the defendants' motion for attorney's fees. The court found the request of over $135,000 to be excessive, and so awarded $51,500.

In November 2007, Internet Solutions Corporation and its President and Director Ayman Difrawi (a.k.a. Alec Difrawi) sued Les Henderson, Daniel Bruce Scalf, Jeremy Scalf, Conrad Longmore, and a number of anonymous defendants for defamation, false light invasion of privacy, and other torts. The plaintiffs subsequently amended the complaint, dropping Longmore from the lawsuit. Henderson and certain other defendants operate websites aimed at increasing consumer awareness about Internet scams and so-called "phishing" activities.

The complaint, filed in federal court in Florida, alleges that the defendants published false and misleading statements about Difrawi and Internet Solutions on a variety of websites and other fora, including comments to the "Money Talk" blog on Tampabay.com. According to court documents, the defendants accused Difrawai of engaging in "on-going criminal activity in the performance of his marketing and consultant business" and suggested that "[Internet Solutions Corporation's] business interests are all fraudulent based on any association or business relationship with Difrawi," among other things.

Henderson and Daniel Bruce Scalf, who are representing themselves, filed separate motions to dismiss the complaint for lack of subject-matter jurisdiction and personal jurisdiction. These motions are currently pending.

Update:

5/1/2008 - Judge ordered Difrawi to show cause why Jeremy Scalf and John Does 1-5 should not be dismissed from the lawsuit.

5/20/2008 - Judge dismissed Jeremy Scalf and John Does 1-5 without prejudice based on Difrawi's apparent lack of prosecution and failure to serve defendants in a timely fashion.

1/21/2009 - Case referred to mediation

5/28/2009 - Mediation set to begin Sept. 1, 2009.

Former Yakima City Councilman Ronald Bonlender filed a lawsuit claiming that his opponent's wife, Diane Ensey, anonymously defamed him and cast him in a false light on a blog.

The lawsuit alleges that Diane Ensey published entries on a blog under the pen name "Publius." According to court filings, in one of the blog entries, the plaintiff is referred to as "a drunk with several DUI arrests," which Bonlender claims is a false statement. The complaint further alleges that the website was taken down the day after the election, and that Richard Ensey admitted that his wife was the anonymous poster in a TV interview.  The complaint seeks general damages for emotional distress.

In January, the Enseys filed a motion for a change of venue due to extensive publicity in Yakima County.  After the judge denied the motion, the Enseys filed a motion for summary judgment.  The judge also denied that motion.  The court set a trial date for March 16, 2009.

On February 03, 2009, the parties settled the case out of court.  In exchange for dismissal of the suit, the Enseys agreed to pay money damages to Bonlender and to issue a public apology.  Bonlender has described the damages as "substantial."