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Rachel Returns Hush Money

Threatens Gloria Allred

7/18/2011 12:30 PM PDT BY TMZ STAFF

TMZ has learned ... Rachel Uchitel has given Tiger Woods back most of the settlement money he paid her ... and now Rachel is preparing to sue Gloria Allred, the lawyer who struck the deal, allegedly because Gloria sold her out for money.

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As TMZ reported, Gloria negotiated a $10 million settlement for Rachel ... just hours before Rachel was going to hold a tell-all news conference about Tiger Woods.  The settlement included a confidentiality agreement, which prohibited Rachel from talking about Tiger.

We've learned the agreement stated ... if Rachel violated the confidentiality clause ... she would not only have to return the money she received but Tiger could sue her for damages as well.

Sources tell TMZ ... several months ago Tiger's lawyer, Jay Lavely, contacted Gloria and said they were going after Rachel because they believed she violated the confidentiality agreement by allegedly speaking with TMZ and going on "Celebrity Rehab" to treat her "addiction to love" -- though she never talked specifically about Tiger on the show.

We're told Rachel felt strongly she had not violated the agreement, but Gloria allegedly convinced her she would lose if push came to shove, so Gloria struck a deal with Lavely -- that Rachel would return the lion's share of the settlement money.

But our sources say ... what has Rachel fuming is that Gloria allegedly made a deal with Jay Lavely -- that Gloria would still get all of her attorney's fees. Rachel believes Gloria sold her out ... allegedly making a deal with Tiger's lawyer to strong-arm Rachel into giving the money back and in return Gloria would get her fee -- a fee Gloria would not have received if Rachel went to arbitration and lost.

We're told Rachel went along with the deal, but as time went on she felt she had gotten screwed, and then hired a malpractice lawyer who has made a demand on Gloria to either pay Rachel what she gave back or get sued.

Sources tell TMZ ... Rachel's lawyer has given Gloria a deadline, and if Gloria doesn't ante up ... a legal malpractice lawsuit will be filed.

We contacted Gloria, who said, "No comment." Ditto Rachel, who was also mum.

UPDATE: TMZ asked Gloria if her law partner, Nate Goldberg, was the lawyer who negotiated Rachel's big give-back to Tiger. This time she said she couldn't answer because of "attorney-client privilege."

UPDATE:  Gloria just told TMZ, "Our law firm no longer represents Ms. Uchitel and we have no comment on this story at this time.  However, we are confident that we have always acted appropriately and in her best interests."

UPDATE:  Gloria just gave TMZ another statement:  "I was not involved in any way in the allegations set forth in the TMZ story which appears today and which references me.  I have not had a conversation with or communicated with Jay Lavely about any client in more than a year.  I am reserving all of my legal rights and remedies against anyone who defames me."


234 COMMENTS

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211.

aword    

I'm glad she going after the attorney.. The attorney should of disclosed she was not giving her money back.. How does a attorney represent their client when the two lawyers are benefiting regardless if they win or lose. Clearly a deal was cut between lawyers. I hope they take this attorney license.

We need to see more of this. Lawyers are worst than any criminal. Why are they watch dog by attorneys so they always win.

1139 days ago
212.

Mike D    

When will people learn Gloria Allred and her s*** daughter are just that s***? Please people wake up!

1139 days ago
213.

Mike D    

While your at it please all networks-NO MORE GLORIA ALLSNAKE-LISA SNAKE BLOOM AND DEAR GOD NO MORE STAR OINK JONES! OH THEY MAKE MY SKIN CRAWL!

1139 days ago
214.

Felicia    

Why shouldn't Gloria Allread be paid, she did all of the work? Besides, I don't think there is anything this slut can say that isn't out there anyway. She needs to get herself a real job and some dignity.

1139 days ago
215.

Blu Lite    

Good for them both, karma, that is. Gloria Allred (along with Nancy Grace, Greta Van Facelift, and a few others) are a disgrace to the legal profession. Rachel is a disgrace to whatever she represents. And journalism is a disgrace for giving airtime to both of these skanks. . .sad the direction these women have taken.

1138 days ago
216.

MEG    

I am not saying she was right for sleeping with Tiger, but hey, he was the loser that cheated on his wife. So honestly I hope she spills every little secret she knows!!

1138 days ago
217.

Ken    

Giving up $10M? Plus anything she made with that money in the last year?

1138 days ago
218.

Sersi    

That is funny lol ...
With all the updates, I hope you recorded them.

1138 days ago
219.

madison    

Stupid ho.

1138 days ago
220.

lucy     

So what she can now write a book and tell all. It will probably get her more than 10 million. Especailly since there will be those that want to make a tv movie out of it as well.

1138 days ago
221.

Heather    

who cares?

1138 days ago
222.

dougx    

Confucius say - "never give back the money voluntarily offered. Never".

1137 days ago
223.

rick    

Williams knows to much about Tiger using Poly Max Extremes and most likely fired him over it.

1137 days ago
224.

Herb    

Let me see if I understand this correctly. She's suing her own attorney for negotiating a $10 million settlement for her because, by doing so, the attorney was 'selling her out'? Am I missing something here? Her attorney can "sell me out" anytime at those rates. And didn't she (Rachel Uchitel)violate that agreement by opening up her own big mouth?

1136 days ago
225.

Rebel Yell    

Lawyers are the lowest form of life, along with adulterers.

1136 days ago
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