Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

A Texas-Size Feud for Sam Wyly


In another claim, Glass alleges that in the second half of 2002, he developed an arbitrage fund for the joint venture. But in the winter of 2002/03, Wyly's representatives demanded that Glass hire Wyly's marketing firm, Ranger Capital Markets, in perpetuity to market the fund to investors, Glass claims in the suit. Glass says he was given two hours to agree to the demand and, when he didn't, Wyly yanked the arbitrage fund from the joint venture and pursued it independently in another of his investment vehicles.

CONFLICTING ACCOUNTS. Further, Glass alleges that, at a meeting on Mar. 7, 2003, Wyly threatened to file a lawsuit accusing Glass of fraud, and also to send fund investors a letter expressing that he was "not comfortable continuing" his associations with Glass.

Glass contends Wyly told him all that could be avoided if Glass further altered terms of the agreement that were favorable to Wyly. Then, in late March, Glass says Wyly's entities proposed a further restructuring of the joint-venture agreement that would have allowed Glass to avoid litigation.

The complaint describes the threatened lawsuit and a draft letter to investors as "a crude form of business extortion to attempt to exact for themselves more favorable


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus