A $40 million libel verdict awarded to a hedge fund and its principals will remain standing after the New Jersey Supreme Court declined to take up an appeal in the case.

The court said Tuesday it would not hear First Advantage Litigation Consulting's challenge of a verdict awarded to Parsippany-based NuWave Investment Corp. and two of its principals, Troy Buckner and John Ryan. They filed the lawsuit over reports by a predecessor of First Advantage, Back Track Reports, accusing Buckner and Ryan of theft in their prior jobs at a commodities trading firm, Hyman Beck & Co., in Florham Park. Back Track elicited those allegations in interviews with principals at Hyman Beck.

Back Track is responsible for nearly $15 million of the verdict. The remainder was apportioned to Hyman Beck, which will not have to pay that sum because it settled before trial.

The Appellate Division upheld the $40 million verdict in August. The appeals court upheld the portion of the verdict awarding $2 million to NuWave to hire a public relations firm to rehabilitate its image and to commission an audit to submit to a prospective investor, and the portion awarding $38 million for reputational damage to NuWave. Testimony presented by industry colleagues who knew of the unfavorable report supported the assertion that the report affected the reputations of NuWave and its principals, the appeals court said.

The Supreme Court's decision represents a victory for Thomas Smith of K&L Gates in Pittsburgh, who argued for NuWave, Buckner and Ryan at the Appellate Division. Kim Watterson of Reed Smith in Los Angeles argued for Back Track at the Appellate Division.