On December 12, 2016, Highland Capital Management, L.P. (Highland) commenced a defamation action in New York State Supreme Court against one of its investors – Muirfield Capital Management LLC (Muirfield) – and Muirfield’s principal Geoffrey Stern. Highland claims that the defendants falsely told The Wall Street Journal that Highland and its president and co-founder, James Dondero, had stolen investor money. This article explores the facts leading up to the suit and the specific allegations in Highland’s complaint. Highland is not a stranger to defamation suits. See “Highland Capital Management Sues Former Private Equity Chief for Breach of Employment and Buy-Sell Agreements” (May 17, 2012). For more on communicating with the media, see our two-part series entitled “Benefits and Burdens to Hedge Fund Managers of Speaking to the Media”: Part One (Nov. 29, 2012); and Part Two (Dec. 6, 2012).