Rajaratnam Sued by Younger Brother for Alleged Unpaid Compensation and Indemnification of Legal Expenses

Rengan Rajaratnam has filed a civil action in New York State Supreme Court against his brother Raj and various Galleon entities, claiming that he was fraudulently induced into settling his commission and compensation claims for a small fraction of what he was owed, and that he has a right to indemnification from the defendants for legal and other expenses he incurred in defending himself in the civil and criminal insider trading cases against him.  He seeks damages of at least $13.5 million, together with interest, attorneys’ fees and disbursements.  This article summarizes his allegations.  For coverage of other high-stakes compensation or severance disputes, see “New York Court Assesses the Validity of a Former Portfolio Manager’s Claim against a Fund Management Company for Unvested Performance Compensation,” Hedge Fund Law Report, Vol. 8, No. 18 (May 7, 2015); “U.S. District Court Evaluates FINRA Arbitration Decision in High-Stakes Severance Dispute Between UBS and Former Portfolio Manager,” Hedge Fund Law Report, Vol. 4, No. 41 (Nov. 17, 2011); and “New York State Supreme Court Upholds Former Portfolio Managers’ Claims Against Hedge Fund Manager Touradji Capital,” Hedge Fund Law Report, Vol. 2, No. 39 (Oct. 1, 2009).

To read the full article

Continue reading your article with a HFLR subscription.