Yesterday, Project Veritas filed suit in the Southern District of New York against James O’Keefe (and two other former employees). I took a look at the complaint. It’s nonsense.
First, whoever is running PV at this point claimed in the complaint that O’Keefe breached his employment agreement when he started OMG. They claim he was still working at Project Veritas, based on the ridiculous argument that the board’s refused to terminate O’Keefe’s employment even after he resigned, but kept him on “unpaid leave.”
Hint: if you’re not paying someone, they don’t work for you. It’s sort of basic.
PV said they kept James on staff, unpaid, “just in case” there was a way to settle their differences. Then they fired him. But during the middle, they claim James shouldn’t have started a new company yet.
Next, they claimed O’Keefe breached a non-disparagement provision by “falsely insinuating that” Pfizer was involved in his termination. Um. “Insinuating” sounds pretty weak, first of all, to support a six-figure damages claim for breaching a non-disparagement clause. Second, I bet discovery on this issue is going to be fun.
Next, they claimed O’Keefe breached a confidentiality agreement by taking some lists of unnamed donors and some unidentified, pending PV story material, and claimed that he was activity soliciting some other unnamed Project Veritas donors. They claimed O’Keefe improperly solicited unidentified PV employees when he said in a public video message, “I will need a bunch of people around me, and I’ll make sure, I’ll make sure you know how to find me.”
That generalized statement might evidence some future intent to solicit employees, but it cannot possibly uphold a claim of solicitation by itself.
As it happens, this case is squarely in my commercial litigation wheelhouse. I regularly practice “restrictive covenants” law, and have several cases going right now, much more complicated than this goofy lawsuit. So I can offer an informed opinion.
This lawsuit is bull puckey. I’d use stronger language but this is a family blog.
In other words, it’s thin. Super thin. So thin, there’s almost nothing there. For instance, although they claimed O’Keefe was soliciting PV donors, they never named a single donor he’s supposedly solicited and — more importantly — named any donor that stopped donating to PV because O’Keefe supposedly solicited them. Nor does the complaint identify ANY damages. It only claims entitlement to a $100,000 liquidated damages provision.
I haven’t looked into NY law, but in Florida, liquidated damages are disfavored and a suing party must still show the liquidated damages are based on something real, and aren’t just a made up number, which is called a penalty. Penalties are unenforceable.
Shame on the lawyers who filed this trash heap of a complaint.
You guys know that I’ve given Project Veritas the benefit of the doubt and have supported them post-breakup. I’ve run their stories in C&C. But this is a bridge too far for me. James may not be able to disparage them but I can. (Legal Note: I would never defame PV. But publishing truthful information is not defamatory. And, since the controversial organization is a public figure, publishing reasonable speculations should also not be defamatory.)
If the lawsuit isn’t dismissed, I hope James drives them insane with discovery.
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