Rajaratnam Sued Partner for Leaving Him Out of Lucrative Deal
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Nine years before his indictment for using confidential tips to trade stocks, Raj Rajaratnam, a co-founder of hedge fund firm Galleon Group LLC, sued a partner for leaving him out of the loop on a deal that may have made him millions of dollars.
In September 2000, Rajaratnam filed a fraud lawsuit against the founder of a Silicon Valley venture capital firm in which he invested, TeleSoft Partners LP. In the complaint, Rajaratnam claimed Arjun Gupta, TeleSoft’s founder, and Prabhu Goel, a member of its advisory board, deprived him of an investment opportunity by concealing news of a 1999 transaction.