A federal judge in California ordered former Overstock.
com CEO Patrick Byrne on Friday to pay Hunter Biden $1.7 million in punitive damages following a defamation lawsuit.
US District Judge Stephen Wilson levied the financial penalty as a sanction after Byrne failed to appear for a scheduled jury trial in October and discharged his lead trial attorney.
The court determined that these actions caused intentional delays.
The legal dispute originated from a 2023 lawsuit where Biden accused Byrne, an ally of Donald Trump, of falsely claiming during an interview that Biden sought an $800 million bribe from the Iranian government in the fall of 2021.
According to the lawsuit, Byrne falsely alleged that Biden offered to influence his father, US President Joe Biden, to unfreeze $8 billion in Iranian assets and ensure lenient treatment from the US during bilateral nuclear negotiations.
The complaint filed by Biden asserted that Byrne intentionally disseminated these untruths to cause harm.
Biden alleged that Byrne "made, published, and repeated false and defamatory statements knowing full well that the statements are false, for the purpose of subjecting plaintiff to harassment, intimidation, and harm."
Judge Wilson noted that Byrne contested the claims by arguing he lacked actual malice because an Iranian government official had informed him about the purported bribery arrangement.
However, the judge stated that Byrne provided no documentation to substantiate the meeting or show that the official had direct contact with Biden.
The court found substantial evidence indicating that the defendant fabricated major elements of his narrative regarding the covert meeting.
Wilson wrote that the court found "ample evidence" supporting a finding that Byrne "knew the story to be false, and much of the narrative describing the covert meeting with an Iranian government official was fabricated."
As a consequence of the skipped trial and ongoing non-compliance, Judge Wilson entered a default judgment against Byrne.
The final ruling mandated nominal and punitive financial penalties alongside an order for Byrne to pay approximately $35,000 in separate court sanctions.
The judge on Friday wrote that "the evidence is clear and convincing that defendant has engaged in intentional misrepresentation with conscious disregard towards plaintiff's rights" – and he awarded Biden $1 in nominal damages along with $1.7 million in punitive damages.
Following the decision, legal counsel for Biden issued a statement addressing the severity of the allegations made by Byrne.
Counsel Bryan Sullivan stated that the judgment serves as a baseline for the financial liabilities incurred by the defendant.
"The judgment is $1.7 million in punitive damages, and it is the floor, not the ceiling, of what Mr Byrne owes for his conduct," Sullivan added.
"If Mr Byrne chooses to repeat any of it, we will be back in court."
The legal victory coincides with Biden establishing an online audience through social media updates on politics, mental health, and addiction recovery alongside plans to publish essays on Substack, following a presidential pardon from his father regarding federal gun and tax convictions.
