DLA Piper secures US$40 million jury verdict in civil RICO and defamation case

DLA Piper secured a significant jury verdict for investor Hal Lambert and his firm, Point Bridge Capital, in a federal civil Racketeer Influenced and Corrupt Organizations Act (RICO) and defamation case involving online commentator and self-described media personality, Charles C. Johnson.

Following a pretrial ruling establishing liability, a jury in the US District Court for the Northern District of Texas awarded US$40 million in damages, including RICO, defamation, and punitive damages. With mandatory trebling under the RICO Act and the recovery of attorneys’ fees, the total judgment is expected to exceed US$71 million, making it one of the largest civil RICO and defamation verdicts in recent years.

The case arose from an alleged multi-year campaign of threats, extortion attempts, and knowingly false public statements made by Johnson. Johnson repeatedly misrepresented himself as acting on behalf of federal law enforcement and retaliated against Lambert – a prominent investor and public figure – after Lambert refused to give in to Johnson’s demands.

Johnson’s broadcast claims that Lambert engaged in personal misconduct and that his company was a front for Russian money.

“This case was about standing up to lies and restoring reputation, and we’re proud to have achieved this result for Mr. Lambert and the company he built from the ground up, Point Bridge Capital,” said DLA Piper Partner Will Thompson (San Francisco/Dallas), who served as sole trial counsel for the plaintiffs. “The jury sent a clear message with its verdict.”