Hunter Biden wins $1.7M from former Overstock CEO in defamation case
A federal judge has awarded Hunter Biden $1.7 million in punitive damages in a defamation lawsuit against former Overstock.com CEO Patrick Byrne, ruling that Byrne made false claims about Biden's alleged involvement in a bribery scheme with Iran, according to reporting from The Guardian and The Hill.
U.S. District Judge Stephen Wilson of the Central District of California issued the judgment Friday, July 10, after finding that Byrne acted with "intentional misrepresentation" and "conscious disregard" for Biden's rights. The judge also awarded Biden $1 in nominal damages and ordered Byrne to pay nearly $35,000 in court sanctions.
The lawsuit, filed by Biden in 2023, centered on claims Byrne made in interviews and online that Biden had sought an $800 million bribe from Iran while his father, former President Joe Biden, was in office. Byrne said Hunter Biden offered to help persuade his father to unfreeze billions of dollars in Iranian assets and take a softer approach during nuclear negotiations.
Biden denied the allegations, accusing Byrne of knowingly spreading false information designed to damage his reputation. The case had been scheduled for a jury trial, but Wilson entered a default judgment after Byrne failed to appear and the judge said he repeatedly disobeyed court orders and delayed proceedings.
Judge says Byrne lacked evidence for claims
In his ruling, Wilson said Byrne argued that he believed the allegations because he claimed an Iranian government official had shared the information with him.
The judge rejected that explanation, writing that Byrne did not provide evidence showing the official had direct knowledge of any contact with Biden. Wilson said Byrne failed to produce documents or other evidence that could support the claims and found there was "ample evidence" portions of Byrne's account were fabricated.
The judge also determined that Byrne continued promoting the allegations after Biden filed the lawsuit, including encouraging others online to spread the claims.
Wilson wrote that Byrne's conduct went beyond ordinary negligence and amounted to intentional wrongdoing.
Carl Tobias, chair of the University of Richmond School of Law, said the ruling was significant because Wilson's findings addressed the heightened standard often considered in defamation cases involving public figures.
Tobias said the judge's conclusion that Byrne acted with "intentional misrepresentation" and "conscious disregard" went beyond ordinary negligence and aligned with the type of misconduct required under the "actual malice" standard established by the Supreme Court in New York Times Co. v. Sullivan.
Biden attorney calls ruling a 'complete vindication'
Bryan Sullivan, an attorney for Hunter Biden, said the ruling cleared his client of accusations he described as extremely serious.
"This is a complete vindication for Hunter Biden against the false statements made about him by Patrick Byrne," Sullivan said in a statement. "As found by the court, Byrne had no basis to say that Hunter had any involvement with Iran whatsoever."
In a follow-up statement to USA TODAY, Sullivan said Byrne had used his public platform for years to spread allegations against Biden.
"For three years, Patrick Byrne used a national platform to accuse Hunter Biden of treason and to link him to a terrorist attack that killed more than a thousand people," Sullivan said. "Yesterday, a Reagan appointed federal judge of 40 years found that every one of those claims was fabricated by a man the Court described as not credible and as someone who invents farfetched stories to draw attention to himself."
Sullivan added that the damages awarded by the court represented only the beginning of potential consequences if Byrne repeats similar allegations.
"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 said. "If Mr. Byrne chooses to repeat any of it, we will be back in Court."
Byrne's history as a Trump ally
Byrne, who founded Overstock.com and was the company's CEO until 2019, became a prominent supporter of former President Donald Trump and challenged the results of the 2020 election, The Hill reported.
He resigned from Overstock after reports about his relationship with Maria Butina, who was later convicted in the United States on charges related to acting as an unregistered agent for Russia.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com, or on X @athompsonUSAT
This article originally appeared on USA TODAY: Hunter Biden wins $1.7M from former Overstock CEO in defamation case
Reporting by Anthony Thompson, USA TODAY / USA TODAY
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This story was originally published July 12, 2026 at 4:38 PM.