Nearly three months after Louis Bacon filed a $50 million defamation suit against his longtime rival Peter Nygård, Nygård struck back Wednesday with counterclaims in an 80-page filing of his own in the Supreme Court of the State of New York, New York County, which seeks the same amount of damages.

Bacon, chairman and chief executive officer of Moore Capital Management, and Nygård, a Manitoba-based fashion magnate, have neighboring properties in the exclusive Lyford Cay area in the Bahamas and have battled in and out of court for years.

On Wednesday, Nygård claimed in his suit that he and “his neighbors, and native Bahamians lived in peaceful harmony, sharing in Bahamian culture and ideals and enjoying many celebrations together. In the early 2000s, however, hedge-fund billionaire Louis Bacon purchased an estate that borders on Mr. Nygård’s property, and over the past ten years, Mr. Bacon has terrorized, intimidated, and corrupted native Bahamians and Bahamian government officials, and has made it his mission to destroy Mr. Nygård’s reputation and to cost Mr. Nygård as much money as he can in the process. Mr. Bacon’s motivation has been clear from the beginning.”

Bacon’s attorney Orin Snyder, a Gibson, Dunn & Crutcher partner said via email Wednesday, “Nygård finally has been forced to acknowledge that he is the ringleader of a malicious harassment and smear campaign against Louis Bacon, despite years of hiding in the shadows. Nygård now must face these charges in a New York court of law, where the truth will prevail and Nygård will be held accountable for his malicious lies and other wrongful acts.”

Among Nygård’s numerous allegations is one that Bacon “installed on his own property military-grade speakers that were pointed at, and blared dangerous and pain-inducing sound waves towards, Mr. Nygård’s home.”

Nygård’s 150,000-square-foot seaside estate has been the root of much of the dispute between the neighbors, with Bacon alleging that Nygård held raucous parties and tampered with the coral reef, and pointing to a suspicious fire that leveled the Nygård property which resulted in years of renovations. But in Wednesday’s filing, Nygård’s legal team aclaimed that “there is also evidence (a witness who will testify), upon information and belief, that an individual working for Mr. Bacon was involved in setting a fire which resulted in the destruction of significant parts of Mr. Nygård’s Bahamian home.”

Describing Bacon as a “serial litigator, particularly in The Bahamas,” Nygård alleged that “In addition to the several cases through which he seeks to interfere with Mr. Nygård’s property rights, Mr. Bacon has also brought other lawsuits in The Bahamas courts (against news reporters, television show hosts, etc.) complaining about the same protests and videos that are the subject of his complaint in this action — demonstrations by Bahamian citizens that accuse Mr. Bacon of stealing credit for charitable work performed by dedicated Bahamian citizens (and not him) and of racism in connection with the same.”

Wednesday’s filing was in response to Bacon’s legal action in late January and included a laundry list of allegations against Bacon including:

• Murdering “multiple individuals who died under suspicious circumstances and then covered up those murders from law enforcement.”

• Being a “white supremacist” and Ku Klux Klan member “determined to exclude native Bahamians from Clifton Bay.”

• Having been charged by prosecutors and accused of “criminal conspiracy” in a “billion dollar scam” that is “one of the biggest Wall Street insider trading cases ever,” referring to the arrest of former Goldman Sachs director Rajat Gupta.

• Smuggled narcotics and fugitives.

• Possessed terrorist weaponry such as illegal speakers that pose a national security threat to the Bahamas.