The far-right website The Gateway Pundit, known for publishing misinformation, hoaxes, and conspiracy theories, has sought Chapter 11 bankruptcy protection for its parent company, TGP Communications. This move comes as the outlet faces a barrage of costly defamation lawsuits stemming from its promotion of false claims, particularly concerning the 2020 U.S. presidential election.
The Bankruptcy Filing: A Tactic in “Lawfare”?
In April 2024, Jim Hoft, the founder of The Gateway Pundit, announced that TGP Communications had filed for Chapter 11 bankruptcy. Hoft framed the bankruptcy as a response to “progressive liberal lawfare attacks” against his media outlet, suggesting it was a common tool for reorganization and to consolidate litigation. He asserted that the filing was not an admission of fault or culpability and expressed determination that the outlet would not be deterred from its mission.
The Purpose of Chapter 11:
Chapter 11 bankruptcy allows a company to reorganize its debts and assets under court supervision while continuing its operations. The goal is typically to create a plan to repay creditors over time, rather than liquidate assets immediately. For The Gateway Pundit, the filing appears to have been an attempt to halt or at least manage the ongoing defamation lawsuits.
A History of Disinformation and Legal Woes
The Gateway Pundit has a long history of publishing highly controversial and often debunked information. Founded by Jim Hoft in 2004, it expanded significantly, particularly during the 2016 and 2020 U.S. election cycles, becoming a prominent source of far-right news and commentary.
Key Accusations and Lawsuits:
- 2020 Election Conspiracy Theories: The site heavily promoted false claims of widespread voter fraud in the 2020 election, including specific accusations against election workers.
- Ruby Freeman and Wandrea “Shaye” Moss Lawsuit: Two Georgia election workers, Ruby Freeman and her daughter Wandrea “Shaye” Moss, sued The Gateway Pundit for defamation. They were falsely accused by the site of introducing “suitcases of illegal ballots” and participating in a conspiracy to rig the election. This lawsuit led to significant emotional distress and threats for the mother and daughter. While The Gateway Pundit attempted to use bankruptcy to delay this case, a judge ultimately dismissed their bankruptcy filing in July 2024, finding it had been filed in bad faith to avoid the lawsuits. A settlement was later reached in this case.
- Dominion Voting Systems Employee Lawsuit: The Gateway Pundit also faces a defamation lawsuit from Eric Coomer, a former employee of Dominion Voting Systems, who was falsely accused by the site of rigging the 2020 election.
- Other False Claims: Over the years, The Gateway Pundit has promoted numerous other falsehoods, including misidentifying the perpetrator of the 2017 Las Vegas shooting and pushing birther conspiracy theories about former President Barack Obama.
Financial and Operational Impact
The mounting legal challenges have had a clear financial impact on The Gateway Pundit. Google demonetized the site in 2021 due to persistent policy violations related to misinformation, significantly cutting off a major source of online advertising revenue.
The Fallout of Bankruptcy Dismissal:
While the initial bankruptcy filing was an attempt to consolidate and mitigate the impact of the lawsuits, the judge’s dismissal of the Chapter 11 case in July 2024 was a significant blow. The judge determined that the parent company, TGP Communications, was solvent and had filed for bankruptcy in “bad faith” specifically to evade accountability in the defamation lawsuits. This dismissal means that the ongoing legal battles can proceed outside the bankruptcy framework, potentially exposing The Gateway Pundit to direct financial liability and judgment enforcement.
The Broader Implications
The legal troubles of The Gateway Pundit highlight a growing trend of individuals and entities targeted by misinformation seeking legal recourse. The outcomes of these cases could set precedents for how media outlets, particularly those disseminating false information, are held accountable for the harm caused by their publications.
The situation underscores the increasing willingness of victims of online defamation to pursue legal action, and the challenges faced by platforms that rely on the spread of conspiracy theories and unverified claims. For The Gateway Pundit, the bankruptcy filing, and its subsequent dismissal, represent a pivotal moment in its ongoing struggle to contend with the financial and legal consequences of its content.
