Perelman Files a Frivolous Lawsuit

Billionaire Ronald Perelman initiated a lawsuit against his in-laws while acting as guardian of his daughter, Samantha Perelman, and as executor of the estate of his late ex-wife, Claudia Cohen. Perelman believes that Samantha is entitled to property that Claudia’s father, Robert, verbally promised to Claudia. Litigation turned ugly and Perelman unsuccessfully tried to have Robert declared incompetent. This litigation went against Claudia’s wishes that Perelman protect Samantha’s relationship with the Cohens.

Perelman was represented by Paul, Weiss, Rifkind, Wharton & Garrison and Lowenstein Sandler. A New Jersey judge sanctioned the two firms for improper conduct on behalf of Perelman for filing this “frivolous” and “ridiculous” action against Perelman’s in-laws. The two firms will have to pay an undetermined portion of the Cohens’ legal fees and possibly additional penalties. The judge did not personally sanction Perelman because he acted in good faith to protect his daughter and was relying on the advice of his attorneys.

See James Bandler, Judge Deals Ronald Perelman Another Blow, CNNMoney.com, June 16, 2010.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.