In a significant legal victory, billionaire hedge fund founder Louis Bacon has successfully won his decade-long defamation lawsuit against Finnish-Canadian fashion tycoon Peter Nygard. A New York judge ruled that Nygard spread false and damaging statements about Bacon, accusing him of being involved in murder, drug trafficking, and other serious crimes.
Judge Rules Nygard's Statements Were Baseless
State court judge Richard G. Latin in Manhattan delivered the ruling on Monday, finding Peter Nygard liable for defamation. The judge stated that Nygard failed to provide any evidence to support his outrageous claims against Louis Bacon. These claims, which were made in online videos and public statements, included accusations that Bacon was a murderer, drug trafficker, arsonist, insider trader, and even a member of the Ku Klux Klan.
Judge Latin determined that Nygard's false statements fell under a specific category of defamation known as defamation per se. This means the accusations were so severe—involving serious criminal activity and harm to Bacon's professional reputation—that Bacon does not need to prove specific financial damages to be awarded monetary compensation. The judge is expected to schedule a hearing soon to decide the final amount Bacon will receive.
A Bitter Feud Between Former Neighbours
This legal battle is the latest chapter in a bitter and long-running feud between the two men, who were once next-door neighbours in the exclusive Lyford Cay community in the Bahamas. Their dispute has spawned more than a dozen lawsuits across multiple jurisdictions, including New York, London, and the Bahamas.
Bacon's lawsuit argued that Nygard and his companies orchestrated a deliberate smear campaign filled with "outrageous lies" to destroy him both personally and professionally. In 2023, a court-appointed referee, citing overwhelming evidence of this plan, awarded Bacon a staggering $203 million in damages. However, this award was overturned on appeal in 2024 because Nygard, who was in prison at the time, was not properly served with the court papers.
Nygard's Legal Troubles and Planned Appeal
Peter Nygard, 84, is currently serving an 11-year prison sentence in Canada for sexual assault convictions. He faces additional charges in Canada and a separate indictment in New York, USA, for racketeering and sex trafficking. US prosecutors allege he used his company, Nygard International Partnership, to control women through surveillance and physical restraint, hosting so-called "pamper parties" in California and the Bahamas.
Peter Sverd, Nygard's lawyer in the defamation case, expressed disappointment with the recent ruling and confirmed that his client plans to appeal the decision. The case, officially known as Bacon v. Nygard (150400/2015), continues in the NY State Supreme Court in Manhattan.
This ruling marks a pivotal moment in a complex international legal saga, highlighting the severe consequences of defamatory statements, especially between high-profile individuals. The final damages awarded to Louis Bacon will be closely watched as the next step in this protracted conflict.
