Defamation Lawsuit Against Def Con Cybersecurity Conference Dismissed

A dramatic conclusion has emerged in the highly publicized defamation lawsuit against Def Con, a leading cybersecurity and hacking conference. Magistrate Judge Brian Tsuchida has dismissed the claim brought by Plaintiff Chris Hadnagy, a former participant in the annual event, against Defendant Def Con's organizers.

Hadnagy, who hosted a social-engineering village called SEVillage at Def Con, had previously been banned from attending the conference after allegations of misconduct were raised. He alleged that these claims led to widespread speculation about the nature of his transgressions, which he claimed were defamatory in nature.

The dispute began with Hadnagy's report to a former employee and a Zoom call where others complained of his conduct. Def Con banned Hadnagy from its conferences and issued several "Transparency Reports" clarifying the significance of his lifetime ban. The reports stated that he had engaged in severe misconduct, including harassment, and that his behavior did not stop despite agreeing to cease it.

Hadnagy argued that Def Con's Transparency Reports were false and defamatory because they lacked information about any impropriety of a sexual nature at the time they were issued. However, Magistrate Judge Tsuchida rejected this claim, relying on the Restatement (Second) of Torts § 518(h), which states that if the defamatory matter is true, it is immaterial whether the person who publishes it believes it to be false.

The court's decision was based on the fact that subsequent discovery established the sexual misconduct implications were in fact true. Hadnagy had a history of engaging in conduct that made others uncomfortable, including fixating on female bodies, violent outbursts, and berating employees. These incidents were detailed in various testimony statements from former colleagues, which supported Def Con's ban on Hadnagy.

"The truth defense is a complete bar to liability for defamation," Judge Tsuchida stated in the decision. "Hadnagy cannot dispute that the allegations made by Def Con are true. As such, the statements contained in the Transparency Reports were not false or left a false impression."

The ruling has significant implications for Def Con and its approach to addressing misconduct at its conferences. While the organization took steps to address Hadnagy's behavior and protect other attendees from similar incidents, it also faced criticism for potentially perpetuating harm through its reporting.

Background: The Allegations

The dispute began with allegations of misconduct by Hadnagy against several former colleagues. These included his fixation on female bodies, violent outbursts, and berating employees. In various testimony statements, these individuals detailed incidents where they felt uncomfortable or threatened by Hadnagy's behavior.

Hadnagy had previously been banned from attending Def Con after raising concerns about other attendees' behavior. He alleged that this ban was defamatory in nature, claiming that it implied he had engaged in misconduct himself. The court ultimately rejected this claim, finding that Hadnagy's own behavior supported the decision to ban him.

Background: The Transparency Reports

Def Con issued several "Transparency Reports" clarifying the significance of Hadnagy's lifetime ban. These reports stated that he had engaged in severe misconduct, including harassment, and that his behavior did not stop despite agreeing to cease it.

The reports also acknowledged that there was no evidence of sexual misconduct at the time they were issued. However, subsequent discovery established that such incidents did occur. Hadnagy argued that Def Con's Transparency Reports were false and defamatory because they lacked information about any impropriety of a sexual nature.

Conclusion: The Decision

Magistrate Judge Tsuchida rejected Hadnagy's claim, relying on the Restatement (Second) of Torts § 518(h). This section states that if the defamatory matter is true, it is immaterial whether the person who publishes it believes it to be false.

The court's decision was based on the fact that subsequent discovery established the sexual misconduct implications were in fact true. Hadnagy had a history of engaging in conduct that made others uncomfortable, including fixating on female bodies, violent outbursts, and berating employees. These incidents were detailed in various testimony statements from former colleagues, which supported Def Con's ban on Hadnagy.

"The truth defense is a complete bar to liability for defamation," Judge Tsuchida stated in the decision. "Hadnagy cannot dispute that the allegations made by Def Con are true. As such, the statements contained in the Transparency Reports were not false or left a false impression."