Press Esc to close
Friday 29 May 2015
News updated at 7:52 PM IST
Weather
Max: 33°C
Min : 22.3°C
In Bengaluru
Sunny day

It's too much: Gupta contests $6.78 m fee

New York, Dec 15, 2012, PTI:

India-born former Goldman Sachs Director Rajat Gupta has said he should not be required to pay the global investment banking firm $6.78 million it is asking as reimbursement for legal fees and other expenses incurred by it in connection with his insider-trading case.

In a lengthy 43-page motion filed in US District Court here on Friday, Gupta has opposed Goldman’s demand for “restitution” of legal fees and other expenses totalling $6.78 million.

Gupta, 64, said Goldman has not identified and submitted “competent evidence” of the legal fees that it can be reimbursed for.

Instead the company has submitted 540 pages of billing records for a three-year period from December 2009 through November 2012 which do not contain specifics of the legal tasks performed by Goldman in connection with Gupta’s case. Gupta said Goldman is seeking reimbursement of fees for work that was not necessarily incurred during “participation in the investigation or prosecution” of Gupta.

This amount includes more than $3 million of fees incurred before hedge fund founder Raj Rajaratnam’s trial concluded in May 2011 and before the US attorney’s probe of Gupta “kicked into high gear,” Gupta’s lawyer Richard Davis said in court papers.

Goldman is also seeking reimbursement of substantial fees for work on Securities and Exchange Commission matters, both before and after the Rajaratnam trial as well as for work done over the last five months, after the criminal case against Gupta ended.

Gupta also argues that Goldman is not entitled to restitution for legal fees it incurred relating to the SEC’s administrative action against him.
Legal fees that Goldman incurred in relation to the investigation and prosecution of Rajaratnam also do not qualify for reimbursement.

“Simply stated, Goldman is entitled to restitution of only those fees it can demonstrate were necessarily incurred in connection with specific requests by the government or were otherwise required to be done in the investigation or prosecution of the Gupta case,” Davis said.

Gupta said he was informed by the government just one week before his sentencing in October that Goldman was claiming an entitlement to all its legal fees incurred in the course of proceedings arising from Gupta’s conduct, in addition to 25 per cent of the compensation he received as Goldman director.

Goldman is seeking restitution of at least $55,472 representing cash compensation paid to Gupta as a director. Gupta is appealing his conviction on insider trading charges and earlier this month was granted permission to stay out of prison on bail pending appeal.


Go to Top

Photo Gallery
Devotees arrive at Sangam to take holy bath in Ganga River

Devotees arrive at Sangam to take holy bath in Ganga River

Students celebrate their success after the announcement of CBSE class 10th results...

Students celebrate their success after the announcement of CBSE class 10th results...

Monkeys drink water from a tap on a hot day...

Monkeys drink water from a tap on a hot day...

Bollywood actors Arjun Kapoor, Shahid Kapoor, Sonakshi Sinha, Anil Kapoor and Hrithik Roshan...

Bollywood actors Arjun Kapoor, Shahid Kapoor, Sonakshi Sinha, Anil Kapoor and Hrithik Roshan...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Throne...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Throne...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar and Pramoda Devi Wadiyar....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar and Pramoda Devi Wadiyar....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Chariot...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar sit on Silver Chariot...

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar perform a Yagna during....

Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar perform a Yagna during....

Relatives of Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar ...

Relatives of Adopted son Yadhuveer Krishnadatta Chamaraja Wadiyar ...

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday....

Yaduveer Krishnanadatta Chamaraja Wadiyar at a ritual in Mysore on Wednesday....

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523