Two Democratic consultants are accusing Arianna Huffington and her business partner of stealing their idea for the powerhouse liberal website Huffington Post.
Peter Daou and James Boyce charge that Huffington and partner Ken Lerer designed the website from a plan they had presented them, and in doing so, violated a handshake agreement to work together, according to a lawsuit to be filed in New York State Supreme Court in Manhattan.
The complaint is a direct challenge to the left’s most important media property from two stalwarts of the progressive movement. And it challenges Huffington’s own oft-told story of coming up with the idea in conversation with Lerer and other friends.
“Huffington has styled herself as a ‘new media’ maven and an expert on the effective deployment of news and celebrity on the Internet in the service of political ends,” says the complaint. “As will be shown at trial, Huffington’s and Lerer’s image with respect to the Huffington Post is founded on false impressions and inaccuracies: They presented the ‘new media’ ideas and plans of Peter Daou and James Boyce as their own in order to raise money for the website and enhance their image, and breached their promises to work with Peter and James to develop the site together.”
The suit against Huffington, Lerer, and Huffington Post also sheds light on the very political aims of the left’s most powerful – and valuable – online voice.
Democrats need “to develop a dominant position within the Internet,” Daou said during an early meeting about the site, according to the complaint. “It is a system [for] pushing the message, not just for fundraising,” he allegedly said.
Huffington called the charge of stolen ideas and broken deals “a completely absurd, ludicrous supposition” from men whom she’d turned down for jobs on the site.
“We have now officially entered into Bizzaro World. James Boyce and Peter Daou, two political operatives who we rejected going into business with or hiring 6 years ago, and who had absolutely nothing to do with creating, running, financing, or building the Huffington Post, now concoct some scheme saying they own part of the company,” she and Lerer said in a written statement to POLITICO, writing that the two “tried to cash in” before filing suit and “said they’d go away for just a little money.”
“For months now they have been trying to extract money from us. They are filing the lawsuit of course because we did not agree to any payment,” they wrote.
Boyce and Daou said they are filing suit now only for recognition and vindication: They will, the two said in a statement, use any proceeds beyond legal fees and expenses “to support progressive causes and citizen journalists and bloggers who are active in support of those causes.”
“How noble,” Huffington and Lerer said in their statement.
The lawsuit touches on the same legal frontiers of intellectual property and deal-making as did a famous lawsuit Facebook settled in 2008. The success of the suit, which seeks unspecified damages, will hinge on whether Daou and Boyce can prove they had offered “something more specific than a generalized notion” and that Huffington had agreed to make them part of the deal, said Dan Kornstein, a prominent New York litigator.
Huffington Post has emerged as a juggernaut since its launch on May 9, 2005. The site’s front page offers a leftward tilt on political news, a sort of mirror image of the Drudge Report. A cadre of bloggers contribute analysis for free and a growing staff provides original content on politics and whatever other content – notably, celebrity – drives traffic and buzz.
Forbes reported that the site was valued at $100 million when it last raised venture capital, in 2008.
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