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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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Previous 15 Comments | 10 | 11 | 12 | 13 | 14 | 15 | 16
226.

R    

What's poly max?

1156 days ago
227.

Kelly    

Americans MUST practice what they preach and NEVER WATCH OR PURCHASE anything to do with that bit...h c. Anthony!
Additionally, when and if a network is stupid enough to put her on air, then the sponsors better prepare for the absolute boycott of their product no matter what that may be.
Even IF people just cannot stay away from watching, I believe that people WILL hold the sponsors accountable by not buying their products, and boycotting their networks in the end.

Here is the other reason: citizens will be so riled up again at the bitc..h, that they will take it out on advertisers And networks and interviewers as well. Already people hate Gerardo who already is feeling sorry for her, and who clearly cannot ask a hardball question if his life depended upon it!

1156 days ago
228.

thebitterlady    

First off a woman is never gonna keep her mouth shut about having an affair with a millionare.Second,why didnt she just do interveiws and write a book?Everyone famous has someone writing a best seller for them these days.Do you believe Snookie actually wrote a book?I cant be sure because I would never read it but Im sure most of us wouldnt find her deserving of the title Best selling author.All she has to do is sit on her ass and tell an intelligent person her story and theres plenty of people out there that will pay money to read it.When I first heard this story I knew no one could not speak of something so major.Perhaps having people read between the lines is her restraint to not break the agreement but still make a profit.Either way the ho's still gonna make money.Rich men should wise up and keep their brains out of their pants.

1155 days ago
229.

Maria     

Rachel is a diva I saw her in Celebrity Rehab,she thinks she is God , all those druggis there ,the males were crazy about her lol lol lol even Dr. Drew seems very nervious around her, how come this people don't have SHAME? you are addict to love? yeah right you are addict to SEX with married men....she is a gold digger and so ungrateful after Gloria help her in the dark moments "raise vulture ,and they will eat your eyes " is a said......karma works and she is going to be in need and Gloria is not going to be you around you little witch !

1155 days ago
230.

Blog    

So what Gloria does is basically legal blackmail? Either pay up or we go on tv and destroy you with unproven allegations? Herman Cain anybody? I hope she does sue her. She deserves a big taste of her own medicine.

1041 days ago
231.

hahaha    

She shouldn't have received that to begin with.
Rachel ruined Tiger's marriage. Pathetic. She may want to reflect alittle now that she is married and has a child, how she would feel if someone did that to her marriage and family. How can that be legal? she was the mistress.

857 days ago
232.

Holdon McGroin    

It won't matter if she talks or not. You can't understand her with her mouth full.

466 days ago
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