‘Diva of Distressed’ Lynn Tilton beats $1B racketeering suit

Discussion in 'Wall St. News' started by dealmaker, Dec 30, 2017.

  1. dealmaker


    By Carleton English

    December 29, 2017 | 8:18pm

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    New York financier Lynn Tilton REUTERS
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    Flamboyant financier Lynn Tilton just clocked a final-hour court victory for 2017.

    A New York federal judge granted a motion from Tilton — known on Wall Street as the “Diva of Distressed” — to throw out a $1 billion racketeering suit brought by the new managers of the funds she once controlled.

    Alvarez & Marsal had alleged Patriarch and Tilton manipulated the funds to “fraudulently inflate management fees and retain control,” collecting $1 billion in the process, in a suit filed in Manhattan federal court earlier this year.

    “It is a good way to end the year putting to rest the baseless allegations of the #SEC and the Funds that I created, I own and where I serve as the Directors,” Tilton tweeted Friday. “I hope that I can inspire other women to believe we are not easy prey. #MeToo.”

    Tilton and her firm Patriarch Partners managed the Zohar Funds — three portfolios once totaling $2.5 billion of loans to distressed companies — until Tilton stepped down in early 2016 amid squabbles with bond insurer MBIA and investors.

    “This suit – which was filed for no other purpose than to harass and publicly defame Ms. Tilton – had absolutely no basis in fact or law, and today’s dismissal confirms that,” the Patriach spokesperson said.

    An attorney for the Zohar funds did not immediately comment.

    US Judge William Pauley’s ruling comes just three months after Tilton was cleared of fraud charges in a separate administrative action brought by the Securities and Exchange Commission in 2015.

    “Importantly, this dismissal marks a total rejection of fraud claims that have been brought against Lynn Tilton, both by the SEC and now by Alvarez & Marsal,” the Patriarch spokesperson said.

    Filed under lawsuits , lynn tilton , manhattan federal court , patriarch partners
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  2. Overnight


    Umm, isn't the MeToo movement all about women suffering from sexual harassment?

    What does this case have to do with MeToo? Shameful.