In 2002, he was sued for defamation by members of the Toronto Police Force after he sharply criticized a 2000 raid on the Toronto Women's Bathhouse, a lesbian bathhouse event. His calling the police "rogue cops" and "goons" and the operation a "panty raid" was criticized, and the officers alleged what was only a standard liquor inspection hurt their careers and reputations. A jury eventually decided that the seven officers were defamed and ordered Rae to pay $170,000. The settlement money was paid by the city from a fund that protects councillors from having to pay lawsuits from personal funds.