It looks like Cleveland Browns owner Randy Lerner is as good at investing money as he is in hiring people to run his annually pitiful football team. Lerner is claiming in a lawsuit reported by Forbes that a hedge fund is "hiding" $40 Million dollars of his. Forbes writes:
In filing its lawsuit for declaratory judgment enforcing the fund agreements, Paige Capital claims Lerner is contractually restricted by gate provisions from withdrawing its funds because they represent more than 20% of the Paige Capital funds’ assets under management. Lerner Master Fund has countersued for breach of contract, saying it has the contractual right to withdraw its money from Paige Capital’s two hedge funds. Lerner claims in a court document that it’s the only outside investor in the funds managed by Paige Capital, which has “hidden” Lerner’s money and “steadfastly refused to disclose what they have done with” it.
Paige Capital says they have no intention of handing over the $40 Million according to court documents that Forbes revealed.
“[W]e are fully prepared to litigate this matter to the bitter end because we will continue to manage your money, and collect management and incentive fees, until this matter is resolved many years hence,” Christopher Paige, Paige Capital’s general counsel, defiantly wrote in a March letter, court filings show. “You cannot win because you will spend more litigating than we’re fighting over … we decide the best way to protect the funds, and your opinion is irrelevant.”
Too bad us Cleveland taxpayers cannot be so adamant every time we pay for the stadium that his team plays in with taxpayers money.
Next time Lerner should probably read the fine print and doing a little research into the people he entrusts so much money with before he has to do battle in court. Who knew you could be so stupid and be a billionaire?