Battle for Justice

The Seven-Year Battle for Justice:

How Aly Nazerali Took on Fake News and Won

In 2011, Canadian businessman Altaf ‘Aly’ Nazerali found himself at the center of a relentless and baseless online smear campaign. 

What began as a series of false allegations on a U.S. conspiracy blog spiraled into a protracted legal battle that would set a precedent in Canada’s defamation law. Over the next seven years, Nazerali fought tirelessly to clear his name, ultimately securing one of the largest defamation awards in the country’s history.

The ordeal began when DeepCapture.com, a website owned by Overstock.com’s founder and then-CEO Patrick Byrne, published a series of articles authored by Mark Mitchell. 

The stories painted a completely false and damaging portrayal of Nazerali, lacking any basis in truth. The unsubstantiated allegations also posed a serious threat to his reputation and business interests.

Determined to fight back, Nazerali took the matter to court, filing a defamation lawsuit in October 2011 against Byrne, Mitchell, and others in the Supreme Court of British Columbia. 

Recognizing the severity of the case, the court issued a precedent-setting injunction that temporarily shut down Deep Capture. However, the defendants, refusing to back down, argued truth and justification, dragging the case through a lengthy legal process.

In April 2015, the case went to trial, culminating in final arguments in September of that year. The following May, the Supreme Court of British Columbia delivered a resounding verdict in Nazerali’s favor. 

Justice Kenneth Affleck condemned the actions of Byrne and his co-defendants as a “calculated and ruthless campaign” designed to inflict as much reputational damage as possible. Their conduct, he ruled, was driven by “an indecent and pitiless desire to wound.” In response, the court awarded Nazerali an unprecedented $1.1 million in damages—the largest defamation award in British Columbia’s history.

The fight, however, was not over. 

The U.S. defendants pursued multiple appeals, challenging the ruling in the B.C. Court of Appeal. Still, the ruling stood firm, and the Appeal court upheld the defamation verdict in March 2018.

The defendants were ordered to pay special costs due to their “reprehensible” conduct. Undeterred, Byrne and his team attempted to take the case to the Supreme Court of Canada, but in August 2018, the court declined to hear their appeal, bringing the years-long legal battle to an end.

Finally vindicated, Nazerali could put the painful episode behind him. 

“I have closure finally, and I can move on with my life,” he told media, that had been following the case with great interest.

“It’s a vindication for putting down fake news and fighting it. It came at a tremendous cost, but it feels great because my case has now become a reference for similar defamation cases in Canada and elsewhere,” he said.

The significance of Nazerali’s case extends beyond his personal victory. 

Veteran Canadian journalist Stewart Muir suggested that this landmark ruling could embolden others facing similar attacks. 

“In Canada, we are seeing growing discontent with false claims made to the public about trade goods and commodities that the country is heavily reliant on,” said Muir. 

“In the end, it is ordinary Canadians who suffer most when these dishonest tactics are used. Maybe Mr. Nazerali’s success will embolden others who have been unfairly targeted.”

The case also serves as a stark warning to those who use misinformation as a weapon. 

A study from the University of British Columbia’s Sauder School of Business found that businesses and individuals who engage in fake news campaigns often suffer the worst consequences. 

Co-author Ho Kim, now an assistant professor at the University of Missouri-St. Louis, put it simply: “It’s a lesson we all learned in kindergarten—don’t tell a lie. When it’s uncovered as fake news, it brings lasting reputational damage for the offender.”

As Nazerali moves forward, he offers a word of caution to others:
“If it can happen to me, it can happen to you.”

His victory serves as both a personal vindication and a legal milestone, setting a powerful precedent against malicious online defamation. 

Judgements

Media Coverage