Press Esc to close
Tuesday 02 September 2014
News updated at 12:06 AM IST
Weather
Max: 27.4°C
Min : 19.4°C
In Bangalore
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
President Pranab Mukherjee grants degree to a student at the 14th convocation of the University...

President Pranab Mukherjee grants degree to a student at the 14th convocation of the University...

Fireworks on the occasion of 410th installation anniversary of Sri Guru Granth Sahib, the holy...

Fireworks on the occasion of 410th installation anniversary of Sri Guru Granth Sahib, the holy...

Left Front activists take part in a rally to observe anti-imperialist day in Kolkata on...

Left Front activists take part in a rally to observe anti-imperialist day in Kolkata on...

Flood water flows through Srisailam dam after its four crest gates were opened in Kurnool on...

Flood water flows through Srisailam dam after its four crest gates were opened in Kurnool on...

BJP president Amit Shah during a visit to Sree Padmanabhaswamy temple in Thiruvananthapuram on...

BJP president Amit Shah during a visit to Sree Padmanabhaswamy temple in Thiruvananthapuram on...

Prime Minister Narendra Modi shakes hands with Japanese Minister of Foreign Affairs Fumio...

Prime Minister Narendra Modi shakes hands with Japanese Minister of Foreign Affairs Fumio...

Actress & BJP MP from Chandigarh Kirron Kher speaks during a seminar on...

Actress & BJP MP from Chandigarh Kirron Kher speaks during a seminar on...

Prime Minister Narendra Modi and Japan's Prime Minister Shinzo Abe makes a toast during a banquet...

Prime Minister Narendra Modi and Japan's Prime Minister Shinzo Abe makes a toast during a banquet...

Congress president Sonia Gandhi prays in a temple during a visit to her constituency Rae Bareli...

Congress president Sonia Gandhi prays in a temple during a visit to her constituency Rae Bareli...

Congress president Sonia Gandhi in a village hut during a visit to her constituency Rae Bareli on...

Congress president Sonia Gandhi in a village hut during a visit to her constituency Rae Bareli on...

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