Hologram USA owner hit with $4.35M in punitive damages

A jury ordered Alki David, owner of Hologram USA Inc., to pay $4.35 million in punitive damages Tuesday, marking the end of a chaotic sexual harassment trial that lasted nearly a month.

Combined with a $650,000 award for compensatory damages on Friday, the jury ordered David to pay $5 million in total to plaintiff Lauren Reeves, a former employee of his Hologram company.

Reeves was hired as a comedy writer for television programming produced by David's company. According to her counsel Nathan Goldberg, she was forced to quit after months of unwanted sexual harassment from David.

From the audience or the witness stand, David engaged in a number of antics that ensured the trial was an unpredictable spectacle any day he was present. He offered to fight Goldberg during cross-examination, nearly ended up arrested after a scuffle that brought additional bailiffs to the civil courtroom, and routinely shouted over counsel and Los Angeles County Superior Court Judge Terry A. Green to call the plaintiff a "drunk, disgusting cow" or interject similar commentary.

Often dressed in hats orT-shirts featuring the words "Slay the Dragon," a slogan of his own design, David boasted throughout trial that he was a figurehead for a growing "anti-#MeToo" movement. David claimed he was an innocent victim of a conspiracy orchestrated by attorney Lisa Bloom, who represented plaintiffs in other sexual harassment cases against David; and Gloria Allred, a partner at Goldberg's Allred, Maroko & Goldberg.

Meanwhile, Ellyn C. Garofalo, a Venable LLP partner representing David, sought to portray him as a man wrongfully accused, filled with righteous anger. While her client could be aggressive and obnoxious, she said, his courtroom demeanor made it clear he wasn't a liar.

The public image of David as an "eccentric billionaire" who delighted in cruel behavior was a characterized version of his own design, she said, not the real David.

David's eccentricity wasn't the only fabricated component of the act, according to Garofalo. Seeking to mitigate the punitive award Tuesday, Garofalo presented tax records showing millions in losses incurred by David's businesses over the last few years that have greatly dented his wealth.

"None of this adds up to a billion dollars," Garofalo said.

Hologram USA, which intends to stage holographic shows featuring dead celebrities like Tupac Shakur, was charged by the U.S. Securities and Exchange Commission last month with fraudulently scheming to induce investors through materially false representations. U.S. Securities and Exchange Commission v. Alkiviades David et al., 19-cv-09013 (S.D.N.Y, filed Sept. 27, 2019).

Dismissing the jury Tuesday, Green said it was a "day I was not sure would ever come."

Goldberg said afterward he was "very happy with the verdict" but declined further immediate comment. Reeves, who conversed congenially with several jurors in the courthouse halls following the decision, said she was relieved by the result.

Garofalo saw the result as confirmation from the jury that David's behavior was greatly exaggerated because the award was short of the $14 million the plaintiff had asked for. While there were issues at trial that could give cause to challenge the outcome, Garofalo said that decision will be made after conversations with David, who was not in court Tuesday.

Irene Ochilla, the jury forewoman, told the Daily Journal she felt David crossed clearly established boundaries and was unrepentant about it, based on his courtroom antics.

"It could be our own prejudice. I don't know if it is or not. But if we tell you that we don't like something, then, that's it. You should stop doing it," Ochilla said.

Ochilla said she was often amused by David -- even laughing a few times -- but said that didn't factor into jury considerations. The most convincing testimony, according to Ochilla, came from former Hologram USA vice president David Nussbaum, a friend of Reeves during her time with the company. While Nussbaum seemed somewhat sympathetic to David, Ochilla said his testimony made clear the incidents did occur and were unwanted.

Ochilla joked that it would be hard to readjust following the conclusion of the unforgettable trial.

"Now we're trying to go back into the real world, into our world," Ochilla said. "And it's like, this seems slightly boring compared to what we were just doing."