Bloggers Get 1st Amendment Protections in Defamation Suits

SAN FRANCISCO — The 9th U.S. Circuit Court of Appeals on Friday, deciding that 1st Amendment protections for news media extends to individuals posting on the web, unanimously overturned a defamation award against a blogger.

"The protections of the 1st Amendment do not turn on whether the defendant was a trained journalist, formally affiliated with traditional news entities,” wrote U.S. Circuit Judge Andrew D. Hurwitz for a three-judge panel deciding the case.

The appeal by Obsidian Finance Group and owner Kevin Padrick focused on the Christmas Day blog post of Crystal Cox, who accused them of fraud, money laundering and corruption in connection with the bankruptcy of Summit Accomodators. Padrick served as a bankruptcy trustee in the case.

A federal court in Oregon held that most of Cox’s posts about Obsidian and Padrick were constitutionally protected, but the court allowed Cox to face trial on one post that accused Padrick, in acting as a bankruptcy trustee, of failing to have paid taxes for Obsidian.

Later, a jury awarded plaintiffs Obsidian and Padrick a total of $2.5 million in damages.

Cox, who represented herself at trial, appealed. She did not contest the jury’s decision that the post was false and damaged reputations but argued she could not be held liable unless it was shown she had acted with negligence.

The 9th Circuit agreed the jury should have been required to find that Cox had acted negligently because her posts involved a matter of public concern and that they could not award monetary damages for presumed, unproven harm to the subjects of her posts unless it found that Cox had acted with malice, posting information she knew was false or with reckless disregard for the truth.

Adult industry attorney Marc Randazza, who knows Cox very well after she registered and used scores of domain names that used portions of his last name, said that portions of the 9th Circuit's ruling are  a "good thing."

"It makes no sense for a speaker's 1st Amendment rights to turn on whether they are a journalist, not a journalist, or a traditional journalist," Randazza told XBIZ. "However the opinion has some troubling parts in it as well.

"The opinion also states that the plaintiff could not recover from the defendant for false statements that he hired a hit man to kill her. Why? Because the writing was so insane that the court didn't take it seriously. So, the 9th Circuit seems to of created a bat shit-crazy defense to defamation.

"Now the traditional news media does not have any special privilege, which is a good thing. At the same it gave more 1st Amendment rights to people who are nuts rather than sane or credible writers."

Randazza in a lawsuit in 2012 alleged that Cox registered the domain name MarcRandazza.com and then tried to extort money from him. He later alleged that when that failed, Cox registered the name of his wife, JenniferRandazza.com, and three-year-old daughter, NatalieRandazza.com, as well as FuckMarcRandazza.com and MarcRandazzaSucks.com. Other "Randazza" domain names followed.

Cox then offered “reputation management” services to Randazza to clean up search engine results related to the domains, according to the suit that has been since adjudicated.

The nearly three-dozen "Randazza" websites registered and used by Cox later were transferred to Randazza by a federal judge.

View 9th Circuit's ruling

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

AV Bulletin: Loopholes and Lawsuits

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Utah 'Porn Tax' Bill Will Head to Governor's Desk

A bill that would tax adult websites and make them liable if minors circumvent geolocation has passed the Utah state legislature and will soon head to the office of Gov. Spencer Cox for signature or veto.

Flirt4Free Co-Founder Gregory Clayman Passes Away

Gregory Clayman, a pioneering figure in the live cam sector and cofounder of the long-running webcam platform Flirt4Free, has passed away.

Pornhub to Restrict Access in Australia as AV Rules Take Effect

Pornhub parent company Aylo will restrict access to its free video-sharing platforms in Australia in response to new age verification regulations, the company confirmed Thursday.

ASACP Announces F2F as 1st Gold Sponsor

The Association of Sites Advocating Child Protection (ASACP) has announced Friends2Follow (F2F) has upgraded its sponsorship and become the organization’s first Gold Sponsor.

House Committee Approves Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce on Thursday passed the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Segpay Adds 'Pay by Bank (UK)' Payment Solution

Segpay has added the Pay by Bank (UK) option to its direct payments solutions.

Federal Judge Orders Refunds for Companies That Paid Trump Tariffs

A judge for the U.S. Court of International Trade on Wednesday ordered U.S. Customs and Border Protection to refund duties paid under the Trump administration’s sweeping program of tariffs.

Creator Verification Platform 'VerifiedCollab' Launches

Performer Eli Thomas has launched VerifiedCollab, a verification platform for creators and producers.

House Committee to Weigh Online Safety Bill With Federal AV Requirement

The U.S. House of Representatives Committee on Energy and Commerce will meet Thursday to consider and potentially amend the Kids Internet and Digital Safety (KIDS) Act, which includes provisions to make age verification by adult websites federal law.

Show More