May 7, 2001
The new agreement, signed April 5, 2001, came too late to prevent Liberty Lobby from again filing for bankruptcy protection. Even though this new agreement meant that Carto and Liberty Lobby would have to pay much more money to IHR than called for in the first agreement, it would have meant that Liberty Lobby could remain open, their mailing list could remain secure, and the Cartos could retain possession of their mansion in southern California.
Among other things, the new agreement set forth a generous payment schedule, and called for Carto to drop all litigation against IHR and run ads for IHR books in Liberty Lobby’s weekly tabloid, The SPOTLIGHT. Aside from a $5,000 “good faith” payment made by Liberty Lobby on signing the new agreement, Carto utterly failed to abide by any of the terms. Carto had signed the agreement for himself, and on behalf of Liberty Lobby.