Hedge Fund Manager Wins Lawsuit Against Perelman

Jan 30 2012 | 2:04pm ET

New York hedge fund manager Donald Drapkin will get his last $16 million from former mentor and friend Ronald Perelman, a jury has ruled.

It took the Manhattan federal court jury just 90 minutes to decide that Perelman's MacAndrews & Forbes had violated its 2007 separation agreement with Drapkin, who had worked at the buyout house for two decades as vice chairman and in-house investment banker. Drapkin alleged that MacAndrews failed to make $16 million in payments as promised; the firm said it withheld the money because Drapkin himself had violated the deal by withholding documents and attempting to convince its life sciences head to leave the firm.

While much attention before the trial, which took just three days, focused on the soured friendship between Perelman and Drapkin and their increasing bitterness towards one another, the judge barred evidence about their relationship.

Drapkin's failure to have his secretary delete MacAndrews documents from his laptop were the primary focus of MacAndrews' defense against the lawsuit. But Drapkin's lawyer told the jury that the firm was simply looking for a reason to break its deal.

"These so-called material breaches were nothing more than phony excuses," he said.

MacAndrews executive Barry Schwartz said the firm was "disappointed" by the verdict and would "review all appropriate post-trial options."


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.