An interesting legal question that I anticipate becoming a central issue at trial is whether or not MCA is a public figure for the purposes of a libel action. For those of you not familiar with the American libel action, which had to be balanced against the fundamental right of freedom of speech, if the plaintiff is a public figure then he must prove that the defendant acted with actual malice, as opposed to the normal tort threshold of violation of a common duty of care.
Given the First Amendment, you can see how this corollary to the traditional tort cause of actions libel and slander arose; simply put, people need to be free to speak about public actors without fear of lawsuit up to the point where they are causing harm via known falsehoods and driven by actual malice. So, for example, I can tweet or post on the Internet that 4 members of the NY Times' editorial board are convicted pedophiles without fear of the NY Times coming after me, so long as I was just repeating what I'd heard or what I had concluded the facts to be. If the NY Times were to sue me, they'd have to overcome a large presumption against libel to get me for damages.
From the pleadings, MCA's attorney has anticipated worst case (which is a large part of what we attorneys do) and argued the case as if MCA were in fact a "public figure." But the issue is not conceded, as it should not be. The interesting argument here is that MCA is very, very famous, but only to a very, very small group of people. I'm guessing that 99 out of a random 100 people on the street would have no idea who he is. So, the defense is going to have a bit of a tough time winning the argument. On the other hand, to the type of people who attend gaming and sci-fi conventions (i.e. goons/goonettes) I would think that number would rise to at least 4 out of 10, which is also not a slam dunk but closer.
The eventual ruling of law will be more or less novel and specific to the case, and will no doubt be very appealable no matter which side the trial judge comes down on.
Of course, the bottom line here is that defendants are likely judgment-proof in any case. The chances of MCA collecting anything even if he does win is remote. If he's really doing this, it has to be for the principle of vindication, not the money damages.
In my experience, such clients rapidly lose their thirst for justice once the real costs of actual litigation starts to roll in. We'll see if MCA has the wherewithal to swallow those costs, but it seems to me to be unlikely. An ideal outcome here would be a settlement with admission of falsehoods from defendants prior to trial but after discovery. After all, defendants will be bearing their own costs as well. I think at the end of the day that is the most likely outcome.