In a significant legal ruling, billionaire hedge fund founder Louis Bacon has prevailed in a long-running defamation lawsuit against Finnish-Canadian former fashion executive Peter Nygard. A New York state court judge found Nygard liable for spreading false and damaging claims about Bacon, including allegations of murder, drug trafficking, and membership in the Ku Klux Klan.
A Decade-Long Feud Culminates in Court Victory
The legal battle, which spanned over ten years, stems from a bitter feud between the two men, who were once neighbours in the exclusive Lyford Cay community in the Bahamas. Bacon alleged that Nygard and his companies orchestrated a malicious smear campaign against him, propagating what the court described as "outrageous lies" through online videos and public statements.
In a decision issued on Monday, December 23, 2025, State Court Judge Richard G. Latin ruled in Bacon's favour. The judge noted that "Mr. Nygard failed to provide any evidence whether the statements... had any truth." The ruling represents the latest chapter in a complex web of more than a dozen lawsuits filed in New York, London, and the Bahamas involving the two wealthy individuals.
Damages and Legal Precedent
The path to this judgment has been winding. In 2023, a court-appointed referee awarded Bacon a staggering US$203 million in damages, citing "overwhelming" evidence of a deliberate plan by Nygard to destroy Bacon personally and professionally. However, that award was reversed on appeal in 2024 because Nygard, who was incarcerated, had not been properly served with court papers.
With liability now established, Judge Latin is expected to schedule a hearing to determine the final amount of damages Bacon is owed. Crucially, the judge found Nygard liable for "defamation per se," a category that covers false statements accusing someone of a serious crime or injuring them in their trade or profession. This legal designation means Bacon will not have to prove specific financial harm to his reputation or business to receive a monetary judgment.
Nygard's Legal Troubles Extend Far Beyond Defamation
Peter Nygard, 84, is currently serving an 11-year prison sentence in Canada for sexual assault convictions. His legal woes are extensive. He faces additional charges in Canada and a United States indictment in New York for federal crimes including racketeering and sex trafficking.
U.S. prosecutors allege that Nygard used his company, Nygard International Partnership, to control women through surveillance and physical restraint. The indictment details how he hosted so-called "pamper parties" in California and the Bahamas, where guests were offered food, drinks, and spa treatments.
Peter Sverd, Nygard's lawyer in the defamation case, stated his client is "disappointed in the ruling" and plans to appeal. Louis Bacon, 69, the founder of Moore Capital Management, has now secured a definitive legal victory in a personal conflict that has played out in courtrooms across the globe for more than a decade.
