Rachel Uchitel has returned most of the settlement money paid to her by Tiger Woods. And she is also planning on suing Gloria Allred, the lawyer who struck the deal. She alleges that Allred sold her out for money.
Gloria Allred negotiated a $10 million settlement for Rachel Uchitel, just hours before Rachel was due to hold a tell-all news conference about Tiger Woods. The settlement included a confidentiality agreement, which prohibited Rachel from talking about Tiger.
The agreement stated that if Rachel violated the confidentiality clause she would have to return the money she received and Tiger could also sue her for damages,
A few months ago, Tiger Woods’ lawyer, Jay Lavely, told Gloria they were going after Rachel because they believed she violated the confidentiality agreement by going on “Celebrity Rehab” to treat her “addiction to love.” However, Rachel never talked specifically about Tiger on the show.
Rachel was adamant she had not violated the agreement, but Gloria allegedly convinced her she would lose if she tried to fight her case. So Gloria struck a deal with Lavely to return most of the settlement money.
Now, though, Rachel is furious with Gloria for that deal with Jay Lavely, which also meant that Gloria would still get all of her attorney’s fees. Rachel believes Gloria sold her out to return the money. If Rachel went to arbitration and lost, Gloria would not have received her fee.
Even at the time, Rachel was unhappy with the deal, although she agreed to it. She hired a malpractice lawyer who has demanded that Gloria either pays Rachel what she gave back by a stated deadline or get sued.
Neither Rachel nor Gloria were available to give any further comment.