When it comes to making good on threats to sue his detractors
for libel, Las Vegas gaming mogul Sheldon Adelson puts his money
where his mouth is. And given that he has $24.9 billion as of
the last accounting by Forbes, the Republican money man can
afford to have a very big mouth. On Tuesday, his lawyers at
Wood, Hernacki & Evans and Olasov & Hollanderfiled a complaint
in federal court in Manhattan against the Jewish Democratic
Council, seeking $60 million, based on assertions that the group
libeled Adelson when it repeated unfounded claims that he
abetted prostitution at his resort in Macau.
Adelson's complaint said the only source of that allegation
is a disgruntled former employee with whom the mogul is also
engaged in multifaceted litigation -- including a libel suit
Adelson brought against the former employee, Steven Cohen, in
state court in Miami. (Kendell Coffey of Coffey & Wright filed
that one in July, according to court records.) In between the
two recent libel suits, Adelson counsel Lewis Clayton of Paul,
Weiss, Rifkind, Wharton & Garrison wrote a threatening letter
about the prostitution allegations (as well as claims Adelson
has ties to the Chinese mafia) to the Democratic Congressional
Campaign Committee, which soon thereafter issued an abject apology to Adelson.
Are you beginning to see a pattern? Libel suits are a
relative rarity, even by rich celebrities. Adelson, on the other
hand, brought at least three previous libel cases before the
recent crop, always using top firms or celebrity lawyers like
Kendall Coffey and Lin Wood to hunt down his alleged defamers.
In 2005, for instance, Adelson sued a British gaming workers
union and its top official for calling him, among other things,
"perhaps the most vilified man in Nevada." At the same time, he
sued London's Associated Newspapers for a related, but much more
detailed, article in the Daily Mail. According to a July 2011 ruling by the High Court of Justice in London, the newspaper
apologized to Adelson and settled its case in 2008; the court
tossed the union case for lack of prosecution by Adelson, who
was represented by Harbottle & Lewis (of News Corp fame).
Two other libel actions by Adelson didn't go particularly
well for the casino king. In 2005 he sued Las Vegas newspaper
columnist John Smith over his depiction of Adelson in a book
called "Sharks in the Desert." The case was being litigated in
state court in Los Angeles but ended up in federal bankruptcy
court in Las Vegas after Smith declared bankruptcy, asserting
that he could not afford to defend the suit in California.
Smith's publisher, Barricade Books, was also sued for libel and
also entered bankruptcy. In 2008 the publisher agreed to a
judgment of libeling Adelson, according to a filing by Adelson's lawyers at Duane Morris and Lavely Singer. Adelson said he was
satisfied with the judgment against Barricade and offered to
drop the case against Smith, but Smith said he wouldn't settle
unless Adelson paid his defense costs. Over Adelson's protests,
U.S. Bankruptcy Judge Bryce Markell eventually entered an order
that dismissed the suit against Smith with prejudice and
directed Adelson to pay some of Smith's costs. (Adelson lost his
appeal.)
In 2006 Adelson sued an Israeli businessman and onetime
business colleague for spreading false rumors that Adelson had
taken advantage of his blindness. (The libel suit, in which
Adelson was represented by Duane Morris and the firm now known
as SNR Denton, followed an unsuccessful extortion case Adelson
brought against the Israeli.) After a trial in 2009, a federal
jury in Las Vegas exonerated the Israeli defendant, in a verdict
affirmed by the 9th Circuit Court of Appeals.
The losses don't really matter, though. The goal of
Adelson's libel campaign appears to be to inspire fear, and I
doubt that a story like Smith's -- which ended with a victory of
sorts against Adelson, but only after years of litigation and
declaration of bankruptcy -- is especially reassuring to
Adelson's libel targets. Adelson spokesman Ron Reese didn't
return my calls and didn't send me a requested copy of the Miami
complaint against Steven Cohen, which is not on an electronic
docket. But when the Democratic Congressional Campaign Committee
apologized to Adelson, Reese told Politico that Adelson's
threatened libel suit "should serve notice to those who would
attempt to smear Mr. Adelson by repeating the false and
inflammatory statements of a fired employee -- that this is a
very slippery slope." Unspoken, but clearly implied, is that at
the bottom of the slippery slope is a process server ready and
waiting to slap Adelson critics with a libel complaint.
Lewis Clayton of Paul Weiss -- which is described as regular
outside counsel to Adelson's Las Vegas Sands in emails uncovered
by Politico -- declined to comment on his firm's relationship
with Adelson. None of Adelson's other lawyers returned my calls.
(This post has been corrected. A previous version
incorrectly identified Adelson's former employee and his
spokesman.)
(Reporting by Alison Frankel)
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