Legal Definitions - hush money

The term hush money refers to a payment made to an individual in exchange for their agreement to keep specific information confidential or to prevent them from publicly disclosing facts that could be damaging, embarrassing, or otherwise detrimental to the payer.

The primary purpose of such a payment is to secure silence and avoid negative consequences that might arise if the information were to become public.

• Example 1 (Corporate Context): A large pharmaceutical company discovers that one of its former research scientists has evidence of a serious flaw in a newly approved drug. Rather than risk a public health scandal, product recalls, and a significant drop in stock value, the company offers the scientist a substantial financial settlement, far exceeding their standard severance package, in exchange for signing a comprehensive non-disclosure agreement. This agreement specifically prohibits the scientist from ever speaking about the drug's flaw or any other company secrets. The payment, made to ensure the scientist's silence and prevent the damaging information from reaching the public, illustrates the concept of hush money.

• Example 2 (Personal Reputation Context): A well-known celebrity is involved in a private incident that, if revealed, could severely damage their public image and career. They learn that an acquaintance possesses photographic evidence of the incident and intends to sell it to a tabloid newspaper. To prevent this potentially career-ending information from becoming public, the celebrity offers the acquaintance a significant sum of money in exchange for the photographs and a signed agreement to never discuss the incident with anyone. This payment, made solely to suppress the information and protect the celebrity's reputation, is a clear example of hush money.

• Example 3 (Political Context): During a heated election campaign, a political candidate learns that a former campaign volunteer is threatening to expose details of a past financial impropriety committed by the candidate. To avoid a scandal that could derail their chances of winning, the candidate's campaign manager arranges a payment to the former volunteer, disguised as a "consulting fee," with the explicit understanding that the volunteer will remain silent about the past impropriety. This payment, intended to suppress damaging information and protect the candidate's electoral prospects, falls under the definition of hush money.