Defamation damages are the monetary awards a victim can seek when their reputation, business, or emotional wellbeing is harmed by false statements. These damages fall under civil tort law and may cover financial loss, emotional distress, or even punitive compensation.
In this guide, we explain the types of defamation damages, how to calculate and prove them, and what real court cases have awarded. Whether you’re pursuing justice or defending against a claim, understanding damage valuation is key.
What Are Defamation Damages?
Defamation damages refer to the financial compensation a victim can seek when false statements typically in cases of online defamation have harmed their reputation, emotional wellbeing, or professional standing. These damages are part of civil tort law and aim to restore the victim to their pre-defamation position.
Defamation can lead to devastating consequences from loss of income to long-term mental distress. Courts evaluate both tangible and intangible harm when determining fair compensation. Learn more in our overview on Defamation Law.
According to a 2023 defamation report by LexisNexis, over 43% of defamation lawsuits in the U.S. involve online platforms like Yelp, Facebook, or Reddit.
Types of Defamation Damages
There are four primary types of damages awarded in defamation lawsuits:
| Damage Type | Description | Example | Legal Consideration |
| Special Damages | Tangible financial losses (e.g., lost clients, wages) | A contract canceled after a false review | Requires proof (invoices, records) |
| General Damages | Emotional distress, mental anguish, reputational harm | Anxiety or social isolation | Proven through impact statements |
| Punitive Damages | To punish extreme or malicious conduct | Intentional smear campaigns | Must show actual malice |
| Nominal Damages | Small amount where actual loss isn’t proven | Symbolic award or public apology | Legal win without large payout |
For emotional harm guidance, visit our post on Emotional Distress Damages.
How Are Defamation Damages Calculated?
Damages in defamation cases depend on multiple factors:
- Documented losses (e.g., lost income, canceled clients)
- Emotional harm (personal statements, medical support)
- Malicious intent (required for punitive awards)
Sample formula:
Total Damages = Special + General + (Punitive Multiplier × Severity)
Courts also weigh audience size, content permanence, and reputational scope. Expert witnesses may estimate long-term reputational harm and visibility damage.
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Proving Defamation Damages
To support your claim, you should gather:
- Screenshots or digital copies of the defamatory content
- Financial evidence of loss (e.g., bank statements, contracts)
- Witness statements or client testimonials
- Review or SEO data showing reputational impact
- A professional assessment of brand harm
To succeed in a defamation lawsuit, you must first prove the defamatory statement meets legal standards. This includes showing falsity, publication, fault, and harm. Learn how to do that in our guide on How to Prove Defamation.
Use our Internet Defamation Expert Witness services to build a strong, evidence-backed case.
Real-World Examples of Defamation Damages
Business Case:
A professional services firm lost 40% revenue due to defamatory Reddit posts. They documented losses and received $85,000 in court-awarded damages.
Personal Case:
An entrepreneur targeted in a fake article lost two investment opportunities. After demonstrating emotional and financial damage, the settlement totaled $120,000.
Explore more Cases of Online Defamation.
Legal Precedents and Payout Benchmarks
Notable court decisions show real-world compensation amounts:
Mike Lindell v. Eric Coomer – $2.3M Award (2025)
In a federal jury trial in Colorado, Mike Lindell, founder of MyPillow, was ordered to pay $2.3 million to Eric Coomer of Dominion Voting Systems. The judge ruled the false claims alleging Coomer engaged in election fraud irreparably damaged his career and reputation
Fox News – $787.5M Settlement with Dominion (2023)
Dominion Voting Systems filed a defamation lawsuit against Fox News alleging false reporting during the 2020 election. Just before trial, Fox agreed to a historic $787.5 million settlement — one of the largest defamation payouts in U.S. history
CNN Ordered to Pay $5M to Navy Veteran (2025)
A Florida jury awarded Navy veteran Zachary Young $5 million after finding that CNN knowingly broadcasted false claims linking him to black market schemes following the Afghanistan withdrawal
$38.3M Internet Defamation Verdict (2016)
A Nevada federal court issued a $38.3 million jury verdict in a case involving online defamation and false-light invasion of privacy among the largest awards in internet-based defamation cases.
$500K Facebook Comment Settlement (2017)
In North Carolina, a Facebook comment falsely accusing a woman of causing her child’s death led to a $500,000 settlement, despite the post being live for only one minute
State laws and precedents shape these rulings. Learn more in Defamation Lawsuits and Penalties.
Key Legal Precedents
In Milkovich v. Lorain Journal Co. (497 U.S. 1, 1990), the U.S. Supreme Court clarified that opinions implying false facts aren’t automatically protected, strengthening defamation claims. Similarly, Gertz v. Robert Welch (418 U.S. 323, 1974) introduced the standard for private individuals, mandating at least negligence for liability.
FAQs About Defamation Compensation
How much can I win in a defamation case?
It ranges from $5,000 to $250,000+, depending on the severity of harm and your proof.
What proof do I need?
Financial documentation, expert analysis, and digital evidence.
What if I can’t prove financial damage?
You may still qualify for general or nominal damages for emotional distress.
Can I sue over online reviews?
Yes, if they are provably false, defamatory, and cause measurable harm.
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