Jury awards $11M to ousted CEO of Parler app; his attorney calls it a vindication

Las Vegas jurors voted in favor of the former CEO of social media company Parler Friday, determining that app financier Rebekah Mercer conspired with one or more others to unlawfully take his portion of the company.

For his ownership interest, the jury awarded $10.83 million to John Matze, who previously led the app, and also awarded $250,000 in punitive damages.

Matze’s ouster came after the Jan. 6, 2021, attack on the U.S. Capitol, during which critics and journalists said rioters used the app. The company was thrown into tumult and removed from major technology platforms.

Parler launched in Henderson in 2018 as a conservative-friendly alternative to Twitter and attracted the involvement of major political figures. Now-Vice President JD Vance was listed as a manager. Dan Bongino, who served as a deputy FBI director in the current Trump administration, at one point owned 7.5 percent of the app and was a defendant in Matze’s suit.

Mercer and her attorneys did not comment after the verdict.

Todd Bice, an attorney for Matze, said the result showed his client had no blame for what happened to the company around Jan. 6.

“John wanted vindication for what happened and he got it,” he said.

With interest dating back to 2021, he said he expected the amount due his client would actually be about $16 million.

Bice argued during the trial that Mercer and others plotted to remove Matze, causing him to lose his job and a 40 percent interest. Mercer’s attorney Chad Clement asserted Matze was terminated for good cause.

Among other findings, jurors determined that NDMAscendant — a company owned by Mercer and a trust — breached the Parler operating agreement, damaging Matze; that Mercer made an agreement with at least one other person or entity to induce a breach of Parler’s operating agreement and that the breach was done to harm Matze; and that Mercer made an agreement with at least one other person or entity to accomplish the unlawful objective of converting Matze’s membership units in Parler.

Jurors awarded the punitive damages against NDMAscendant, but not Mercer.

Bongino testified at trial, but Bongino and Matze ultimately reached a confidential settlement, according to Bice and court records. Claims against Bongino were dismissed Thursday.

Jurors determined punitive damages in a separate phase of the trial Friday after returning their initial verdict.

Mercer testified that NDM has no assets and a zero or negative net worth.

During cross-examination from Bice, she seemed nervous and hesitant as the attorney questioned her about her role in NDM, which she described as an entity used to fund Parler.

Mercer confirmed that it appeared she had made an $8 million transfer to NDM to cover a legal bill.

“If there is a bill that has to be paid, you will put the money into the account and have the bill paid?” asked Bice.

“No, it depends on the bill,” Mercer said.

The attorney suggested she would not put money into the company if she didn’t want to pay a bill.

“That’s not what I’m saying,” she replied.

Bice then encouraged the jurors to award over $30 million in punitive damages as a deterrent.

“You want a headline,” he told them, later adding, “You’ve all checked yes on the conspiracy to convert (claim). Well, conspiracy to convert is just stealing. It’s an agreement to steal.”

Clement asked the jury to award no punitive damages or only a small amount and consider the financial condition of NDM.

“NDM thought it was following the contract, responding to things that Mr. Matze was doing,” he said.