Legal Question in Civil Litigation in California

Re: Subject to libel

In California, you must prove that the maker of the statement knew the statement was false, or, published the statement in reckless disregard of the truth, or, was negligent in learning whether the statement was false.

With respect to the discussion, most discussion is probably opinion of the participants and therefore is generally protected. The fact that the publisher suggested the bankruptcy can be used in a number of ways. First, I would argue that the publisher has no right to quell any talk of bankruptcy in the first place, as long as the individual factual statements in the discussion are not false, etc. Second, the fact that the publisher brought it up certainly suggests that the discussion group participants are not talking about the matter recklessly. They have information, from the publisher himself, suggesting the possibility of a bankruptcy. Speculation about what will happen to subscriptions is clearly protected opinion. I think there is very good insulation against any claim by the publisher. Of course, you would have to take each statement individually and determine whether the facts presented in a given statement are true or false. A general "discussion" is too vague a concept to analyze.

Re: Subject to libel

I agree with Mr. Pavone's answer. I want to add that a statement is only libelous if it is false. The statements contained in the discussion are protected if they are true, or if they are (and would be understood as) statements of opinion, as statements of opinion can't be false. Mr. Pavone wisely points out that, without seeing the statements at issue, it is impossible to express an opinion about whether or not they are libelous. (The law is a bit more complicated than this, but what I have said is generally true.)

I should also point out that the magazine would have to find each author and pursue them as individuals; from what you have said, it doesn't sound like there is a way to hold any one defendant liable for all the different statements.

There is a statute in California designed to protect people from lawsuits which are brought to silence their free speech rights. It is rather powerful and can dispose of such a suit quickly if it is brought (and, of course, if the judge agrees that this statute applies).

Please feel free to contact me if you want to discuss this further.