Gawker Media Files Bankruptcy Following $140M Hulk Hogan Verdict

New York, NY — Gawker Media has filed for bankruptcy less than three months after a Pinellas County jury awarded Hulk Hogan $140.1 million in damages related to a sex tape released by the online publication.

The petition was filed in the U.S. Bankruptcy Court for the Southern Division of New York Friday. Chapter 11 bankruptcy allows for protection from creditors while a reorganization takes place. It is unclear whether the filing will impact Hogan’s ability to collect.

In its petition, Gawker reported it had between 200 and 999 creditors. The company estimated its assets between $50 million and $100 million but said estimated liabilities ranged between $100 million ad $500 million.

See Also:

• Hulk Hogan's Win In Gawker Sex Tape Trial Up To $140.1 Million
• Hulk Hogan Blames South Tampa Upbringing for Racial Slur
• Hulk Hogan's Bandana Raising Eyebrows In Sex Tape Trial

Hogan, whose legal name is Terry Gene Bollea, is listed as the largest single creditor in the court documents. Gawker estimates it owes Bollea $130 million, according to the documents. The claim is listed as "disputed."

The next largest debt listed by Gawker is $115,379 owed to Morrison Cohen, general counsel. The third largest creditor is Risk Strategies Company, which is owed $82,300, the court documents show.

News of the filing broke on Friday afternoon with Reorg Research tweeting the development. The company provides automated docket updates, news and analysis for distressed debt investors, restructuring professionals and lawyers, according to its website.

Hogan’s legal case centered on Gawker Media’s decision to post a video on its website that showed him engaged in sexual intercourse with shock jock Bubba the Love Sponge’s then-wife Heather Cole.

The verdict followed two weeks of deliberation during which both sides insisted the law was on their side. Gawker contended it was well within its rights to post an edited version of the sex tape in 2012. Bollea’s lawyers have maintained the tape was recorded without their client’s consent and knowledge and posting it was an invasion of his privacy.

The video, believed to have been recorded in 2007, also contained footage of Bollea making a racial slur. That portion of the tape was brought to light last year, resulting in Bollea's ouster from professional wrestling's WWE and his removal from the organization's hall of fame.

Hogan was initially awarded $115 million in the March jury trial against Gawker Media. The jury added $25.1 million in damages in the punitive phase of the trial, bringing the total to $140.1 million awarded in the case.

The initial $115 million included $55 million for economic damages and $60 million for emotional distress.