Jordan Shanks – said Mr Palmer was feeling bad over being called as a dense Humpty Dumpty and fatty. The YouTuber told fans that the video had not only damaged Mr Palmer’s reputation but it was just being sarcastic.
Mr Palmer, a mining tycoon and former MP, has asked for A$500,000 (£270,000; $340,000) for the damages. His lawyers have sent the notice to the YouTuber in May, it is not known if they would take further action.
Mr Shanks, is Australia’s well known YouTube comedians, he had posted the video before Australia’s election in May. In the seven-minute video, he had called Mr Palmer with many insulting terms and tried to connect him to the USA president.
According to the lawyers the YouTuber had put defamatory content.
A federal lawmaker from 2013-2016, Mr Palmer has been widely criticized for not paying wages to the workers in one of his collapsed mining businesses. But still he did spend an estimated A$60m (£32m; $40m) on his campaign which was more than Australia’s two major parties.
Mr Shanks, who has over 300,000 YouTube followers, is known for his humor about the Australian politics.