Raj Rajaratnam's 2022 Family Reunion Is Gonna Be Pretty, Pretty, Pretty Awkward

Being sued by your brother for backpay while you're currently doing an 11 year stint in prison will have that effect.
Author:
Publish date:
Updated on

The currently incarcerated hedge fund manager can choose to play off the weirdness of running into his little bro, who sued him this week, one one of a few ways. Option number one: the deep freeze. No talking, no eye contact, no nothing. Not even if he's blocking the potato salad and it would be easiest to just make up a plate and hand it to the guy. No, he goes stone cold. No looking, no talking, no touching. Option number two: diffuse the tension with humor. Go up to little bro and say something like "If someone had told me back when we were kids that I was gonna go to jail for insider trading and you were going to sue me for millions while I was in prison, I woulda said 'Interesting, go on'." Option number three: play the part of the generous older brother. Tell him it's water off a duck's back and though thoughts of "Going all Michael/Fredo on your ass crossed my mind, I can't stay mad at you little buddy." Option number four: Grovel. Say you failed him as a brother, but that if your time in the big house has taught you anything, it's the importance of family. But not like your prison family, like your family-family.

Galleon Group founder Raj Rajaratnam, who is serving an 11-year prison term for insider trading, and his hedge fund have been sued by his younger brother for $13.5 million he claims is owed him in unpaid commissions and legal costs. Rengan Rajaratnam, who in 2014 was cleared of criminal insider trading charges following his older brother's conviction three years earlier, filed the lawsuit on Wednesday in New York state court. In the lawsuit, Rengan Rajaratnam, 45, said Galleon failed to pay him $8.3 million on profits of $83 million he made for the hedge fund as a portfolio manager in 2009. He said Galleon also wrongly did not pay him up to $1 million for telecommunications stock recommendations he made in his other role as an analyst, and also failed to advance his legal fees and costs during the insider trading case. As a result, Rengan Rajaratnam said he had to pay $2 million in legal fees out-of-pocket and may owe another $2 million. Galleon also failed to help cover any of the $840,000 civil settlement he reached with the U.S. Securities and Exchange Commission after his acquittal, the lawsuit said.

Galleon founder Rajaratnam, fund sued by his brother for $13.5 million [Reuters]

Related