A courtroom clash spanning nearly 20 years is gearing up for another round.
Back in December 2008, shortly after Barack Obama’s first presidential victory, Gentry Beach filed suit against his ex-employer, Touradji Capital, claiming unpaid compensation. His former coworker, Robert Vollero, joined the lawsuit in early 2009.
Their claim was simple: Paul Touradji, the hedge fund’s founder and a former Tiger Cub under Julian Robertson, had verbally promised them a set share of profits from their trading strategies. They sought $60 million. Touradji, who has since closed his fund, maintained all bonuses were discretionary.
Now, after almost two decades of trials, appeals, and legal maneuvers, the case heads to a third trial in late October, with the stakes swollen to $165 million due to nearly 20 years of accrued interest.
During a virtual pretrial hearing Wednesday, both sides acknowledged the case’s extraordinary duration.
“We all want this over with,” said Michael Stolper, a partner at Seiden Law representing the two traders.
The practical hurdles of retrying a case built on conversations from before the 2008 financial crisis are significant, particularly since the core dispute rests on an oral agreement.
“Witnesses’ memories fade,” noted Andrew Clubok, a partner at Latham & Watkins representing Touradji.
“Some of them aren’t spring chickens,” he added, referring to several witnesses.
Previous testimony has come from the three central figures, along with industry figures like Todd Kantor, founder of Encompass Capital Advisors and a former Touradji employee, and Josh Goldstein, COO of Verition Capital Management, who worked at a rival firm during the relevant period.
In 2019, the traders appeared to have won, securing a $90 million verdict (the jury awarded $45 million of the $60 million sought, plus interest). A jury found their oral agreements with Touradji were legitimate. However, a year later, the First Department — an appellate division of New York’s Supreme Court — overturned the ruling over evidentiary and discovery issues.
A second trial in 2023 ended with a hung jury, and subsequent rulings from the First Department have led to this third trial in state Supreme Court, where the fundamental question — whether the traders are owed money — remains unanswered.
At least one side hopes this will be the final chapter.
“I don’t want a fourth trial,” Stolper said Wednesday.