Investor Steinhardt loses Reuters case over sale of portrait of George Washington

Herbert Rush

New York (Reuters)-Former Wall Street hedge fund magnate Michael Steinhardt (Michael Steinhardt) lost the lawsuit against an art gallery and its president, accusing him of obtaining “unfairly” a portrait from a $12 million portrait. The secret profit”. George Washington.

New York Supreme Court Judge Joel Cohen dismissed a lawsuit against Manhattan-based Hirschl & Adler Gallery and its president Stuart Feld for breach of fiduciary duties on Monday.

Cohen said that Steinhardt is a sophisticated investor and he did not deny that he understood the consignment terms that it would sell it for $10 million at a “net sale to you” price. He said that he also did not claim that the gallery violated the consignment contract.

Cohen wrote in the dismissal order: “The meaning and enforceability of the term’net to you’ are the crux of the dispute.”

According to the order, Steinhardt claimed that the gallery failed to disclose the market value of the portrait of the first American president painted by Gilbert Charles Stuart around 1800 and misled him into believing that the painting was difficult to sell.

The order stated that Steinhardt purchased the portrait for US$5 million in 2006. He claimed that he did not know the financial consequences of the transaction “net to you” because he was not told that the final sale price was How many.

Cohen said that if Steinhardt also claimed that the gallery was engaged in fraud, unjust enrichment and deceptive business practices, he hoped to arrange conditions for “providing you with a network,” he could have negotiated, but he didn’t.

Trader Steinhardt (Steinhardt) runs a hedge fund that had an average annualized return of approximately 25% in the nearly three years before he closed the fund in 1995.

Calls to Steinhardt and Hirschl & Adler seeking comment did not immediately respond.