Dan Och once paid his former waterskiing instructor and hand-picked successor $300 million to stick around his hedge fund, the then-Och-Ziff Capital Management. Now, he’s super-pissed that said hedge fund, the now-Sculptor Capital Management, is paying the same Jimmy Levin about half as much. So he’s demanding access to Sculptor’s records to determine how, exactly, it came to value Levin’s talents at roughly half the level he did.
Or so he says, in court filings, anyway. Sculptor’s got a slightly different take on the ask.
Sculptor attorneys say Levin’s former mentor is misusing the so-called books and records request to smear him and expunge the record of Och’s conduct “by creating a false narrative in which he is the savior of the company and is protecting it from its current management….”
Och’s animus has turned the relatively routine file request into part of his “blood feud” with his former protégé…. “Sculptor pleads plaintiffs lack a proper purpose,” in seeking the internal files, according to the filing. “Mr. Och and his co-plaintiffs -- all of whom have good reason to be loyal to the man who made them rich -- are using this litigation as a soapbox in their vendetta against the company and Mr. Levin.”
Given the hypocrisy-soaked legal filings and other efforts made by Och and his associates, that is certainly a colorable reading of his actions. And given all of that hypocrisy—from complaints about corporate governance lobbed by a man who presided over a continent-wide bribery scandal that nearly brought down the firm, to complaints from the same man who paid himself $3.9 billion to nearly run said firm into the ground about Levin’s pay package (which, again, is half as rich as the one Och himself gave to Levin), to irritation that the board Och so loathes is looking into doing the very thing Och wants it to do—it’s safe to say that two can play at this particularly nasty game.
The hedge fund firm formerly known as Och-Ziff “deteriorated” under the “mismanagement” of its founder Daniel Och, forcing those who succeeded him to spend years stabilizing the Wall Street firm… Sculptor says Och is targeting Levin for his efforts to resurrect the firm in the wake of the bribery scandal, implement governance reforms and strengthen its balance sheet by seeking financial concessions from Och, who retaliated by vetoing a decision by the board to seat Levin as CEO in 2017….
The firm says that Och should produce documents stretching back six years to “probe the founders’ historical animus.”
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