Libel Suit Over Milken Book Dismissed : Ruling: Lawyer objected to passage describing actions in legal case, but judge says it is ‘substantially true.’

A New York judge on Thursday dismissed a lawsuit arising from claims made about a New York criminal defense lawyer in “Den of Thieves,” the 1991 bestseller about the fall of junk bond king Michael Milken.

Attorney Michael F. Armstrong had filed suit against the book’s author, James B. Stewart, and publisher Simon & Schuster, alleging defamation. Armstrong was mentioned only briefly in the book.

At issue in the lawsuit was a passage describing his preparation of an affidavit to be signed by one client, Craig Cogut, that essentially exonerated Lowell Milken, brother of Michael, of wrongdoing in connection with Michael Milken’s financial activities.

But the book suggests Armstrong had a possible conflict of interest because he represented Lowell Milken and Cogut, an attorney who worked for the Milkens in corporate affairs.

Lowell Milken was indicted for securities law violations in 1989. But the charges against him were dismissed as part of his brother’s agreement to plead guilty to six felony counts.

A decision handed down by a New York trial judge states that the book passage is “substantially true” and that Armstrong had failed to show the publisher acted with malice by printing it.

Stewart said the decision comes as “a great relief” after eight years of litigation. “I hope this decision encourages all journalists and their publishers to persevere no matter how wealthy and powerful the subjects of their work.”

Armstrong’s legal expenses were actually paid by Lowell Milken, according to court papers filed in the case. Armstrong said the judge “misread” the disputed passage and added that he plans to appeal.