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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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16.

Jackie    

And why do most American so called celebs look like MEN?!

1103 days ago
17.

RICK    

Hey Raven, Poly max Extremes is a clear film you put on your driver face to gain extra yardage on your drives its clear and invisible even to the USGA. Alot of golfers use it. Tiger hasnt won a game since getting busted.

1103 days ago
18.

raven    

Thanks Rick.

Do you or anyone else think there is more to what she knows?
ie: sex misdoings?

1103 days ago
19.

Reta    

Legally this sounds completely like Gloria screwed her if the above story is true. I don't know why she would, sounds beyond stupid to me to do something like that and lord knows she already HAS all the money in the world. But if Gloria really DID do this, she might just have screwed herself real good this time!

1103 days ago
20.

Missy    

What can R say that has not already been said? Yes tiger cheated with numerous women etc, etc. They have all sold their stories etc, etc what can she say now that would really be that interesting.

Tiger's divorced and all that is settled, Elin's moved on, he's not playing golf at present, so who cares what R has to say. She should've kept her mouth shut (literally) and be happy with the 10million, Tiger must be laughing at her stupidity

1103 days ago
21.

Johnny    

That can't be legal if it went down like that.

1103 days ago
22.

Me    

Looks like careful wording by TMZ. They included their own name when talking about Rachel breaking the confidentiality clause. They say Rachel didn't say anything on celeb rehab however they don't say that Rachel never said anything to TMZ.

1103 days ago
23.

Mike C    

But I thought Rachel was accustomed to getting screwed???? She has made a profession out of letting others screw her, correct? LOL!!!

1103 days ago
24.

Lisa    

Paying her $10 million was a big mistake by Tiger's team in the first place. There were so many women he slept with even before Rachael but I guess they thought Rachael and Jamie were the only ones. And since one talked, why not keep the other one shut? It was a rush to judgement. I bet if they were to do it all over again, they won't have paid her.

1103 days ago
25.

iFart    

What's "addition to love?" I think it's high time you hired a proofreader, TMZ.

1103 days ago
26.

juggaloszuch    

Whaaaaaaaaaat? you mean Gloria Allred did something for money and publicity and didn't care about the consequences? THE HELL YOU SAY....pleeeeeeeeaaaaaaaaase...Gloria Allred is worse than Al Sharpton or Jesse Jackson whenever a white person gets in trouble. Rachel Uchitel Boom there's Allred, David Boreaneaz's alleged mistress Boom there's allred, she's an attention starved media ho-bag...

1103 days ago
27.

Kevin    

and we care about either one of these useless c*nts because why?

1103 days ago
28.

DirtySouth    

This might open the floodgates. Typically, when one person starts to speak others come out. Gloria's quick willingness to side with the mistress always seemed predatory and contrived. Those women were always exposed and fending for themselves. So, they would be vulnerable to potentially bad legal advice from someone like her. I'm not saying let's cry a river for them, but, moreso, pointing out that in their vulnerability they were prime targets for financial predators. A pimp by any other name is still a pimp.

1103 days ago
29.

Sarcia    

Can't believe it, somebody is finally going to sue the ugly pants off Gloria Allred. Saw this one coming a mile away, she's such a predicable media hog greedy after money and a camera in her mug. Rachel got what she deserve, yes Karma but still... Get'er Rachel! LOL Serve Gloria right.

1103 days ago
30.

JulieB    

Poor Rachel. She lost the love of her life on 9/11. Things haven't gone well for her since. Granted it was her choice to be with a married man, not defending her there. Sadly, as she gets older, her currency is freefalling.

1103 days ago
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