New York Law Journal: After Decade-Long Legal Fight, Hedge Fund Managers Win $46 Million; Now Comes the Appeal

BY JASON GRANT | New York Law Journal

“I will not pay you, I will not pay you a dime, you know, and before this is done and over, your wife will be here in the office, here on her knees, begging for mercy,” a hedge fund founder and defendant yelled at an employee in 2008 according to witness trial testimony.

From left: Michael Stolper, Claudia Varner, Robert Vollero, Gentry Beach, David Greenberger
and Robert Seiden. Courtesy photo.

After more than 10 years of litigation, some 60 depositions, 11 counterclaims, around 900 docket entries and a three-week trial, a jury decided that a Manhattan hedge fund must pay two former portfolio managers $46 million for breaching verbal compensation agreements made in the days when hedge funds new high.

The jury’s awards—$21.4 million to former Touradji Capital Management portfolio manager Gentry Beach and $24.3 million to former Touradji portfolio manager Robert Vollero Jr.—will balloon to a nearly $91 million total payout because of 9% yearly interest to be added to compensation that was earned from 2005 to 2008.

The defendant hedge fund, however, driven by its aggressive and reportedly brash founder, Paul Touradji, recently filed a notice of appeal in the case to the Appellate Division, First Department. The verdict came down in May. And so the epic litigation lives on.

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