(Reuters) - A federal judge has thrown out a $12 million punitive damages award to billionaire William Koch in his lawsuit accusing a fellow oenophile of selling him 24 bottles of fake Bordeaux, and reduced the award to just $711,622.

U.S. District Judge J. Paul Oetken in Manhattan agreed with the defendant, Silicon Valley entrepreneur Eric Greenberg, that the jury's April 2013 award was "exorbitant," being more than 33 times the $355,811 it awarded in compensatory damages.

Oetken also lowered those damages to $212,699, reflecting Koch's prior settlement with Zachys Wine Auctions Inc, reducing the total award to $924,321 from nearly $12.4 million.

"The jury found that (Greenberg) had shamelessly defrauded customers with 'garbage,'" Oetken wrote. "Yet his conduct did not cause a particularly egregious harm: he was dealing in luxury goods marketed to a sophisticated and wealthy subset of the population. The harm was strictly economic, and the victims were far from vulnerable consumers. These facts merit a relatively low award of punitive damages."

Oetken said punitive damages equal to two times compensatory damages would punish Greenberg and deter other fraudsters.

In letting the verdict stand, the judge said Greenberg did not meet his "heavy burden" of showing that reasonable jurors could not have ruled against him.

Greenberg had maintained that he thought the wines were authentic. The trial lasted three weeks.

Oetken also denied Koch's requests to recoup $7.9 million of attorney's fees, and restrict Greenberg's future wine sales. The judge said if Koch does not accept the reduced punitive damages award, then a new trial on those damages will be held.


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Brad Goldstein, a spokesman for Koch, said Koch is reviewing the decision, and is "very pleased" that the verdict was upheld