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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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61.

PFG    

It's competitive, cutthroat & a nasty place...business tactics, publicity & scams! Rachel got into the frey, played & now balking...LOL! She got dealt! ROFL!

Being a hawk is a must against all that's playing money games oh ya! Anyone in this gammit is...Gloria Allred is a primo example in the lawyering duties and this becomes secondary as I see it with what she's does. It's stoked with being all about making headlines, publicity stunts, scamming media, or trading business details this for that and so on. Ethical...hell no, just legal wranglings that are known and unknown!

Now, Rachel made deals, she chose acceptance of this poor deal offered this round. Gloria Allred has proven repeatedly she's in it for what she negotiate for Gloria as well as her client. News worthy someone is finally challenging her tactics, yee haw! You need a lawyer or two on the payroll to be policing your business deals with news hungry focused lawyers like this Gloria Allred's kind to ensure YOUR deals being made are in your best interest above all else.

If YOU put all your eggs in one basket...geez, usually doesn't work out and topples over. Make deals with more info, more considerations on your behalf vs the lawyers as they do things that your NOT privy too even though your the client.

Go GET em, it's all you can do, being it's looks like you broke your latest deal clearly. EEK, one tigress taking on another tigress. MEOW!!!

1006 days ago
62.

Julie    

Not an Alred fan at all. However, she did her job in negotiating the initial settlement, and she should be paid for it. If Rachel violated the terms after the settlement, Alred should not lose her attorneys' fees.

1006 days ago
63.

azlee    

Glad to hear someone is taking a second look at this lawyer. Her tactics seem a bit shady most times.

1006 days ago
64.

tgrfan42069    

gloria is all about publicity she couldnt care less about her clients

1006 days ago
65.

the artist formerly known as hand turkey    

Well, since she had to give the money back, she doesn't have to keep quiet now, right??

GA is a vulture.

1006 days ago
66.

janet    

Can't stand that lady. The only interest she has is always been her own.

1006 days ago
67.

Joe Blowe    

Maybe Uchitel is returning the money so she's free to write a tell-all book aboot Tiger, eh??!!

She could make many more millions from a book (and perhaps even a movie) then she ever will from any settlement

1006 days ago
68.

AndUKnowThisMan    

Gloria Allred is a straight up Crook! She is pure s*****traight up!!

1006 days ago
69.

Sas    

No one cares.

1006 days ago
70.

Mikey    

'Stupid' and 'Whore' always seem to go together.

1006 days ago
71.

tessa    

blood sucking parasites usually do fall off the host once they've engorged themselves. hard to say exactly what happens when there's a blood sucker on top of a blood sucker, reckon that's what happened here. they both deserve nothing but contempt.

1006 days ago
72.

SuzyCreamCheese    

Well she gained back some of my respect by giving back the money.
She should have given it to his wife though.
Keep your legs closed to married men Rachel! Even rich fugly looking ones that look like bugs!

1006 days ago
73.

HMMMM    

Get a real job. My guess is that Gloria Allred is too smart to fall into a bimbo trap like that, at least I hope she is. Don't much care for her, but doubt she got where she is by making foolish mistakes like that. For a woman that claims to have loved a guy killed in the September 11th fiasco, she sure got over that quick. What a pig

1006 days ago
74.

Philly_Special    

This b*tch is sooooooo stupid. 10 mil & she couldn't just keep her mouth shut. lmao... dumb whore.

1006 days ago
75.

Persnlmgr    

Finally, after all these years and re-****-ulous press conferences, someone's going after Allred. There may actually BE a G*d!!!!

How ironic that it took an actual whore to stand up to THE Media Whore!!!

Here's 4 words I never thought I'd utter: GO GET HER, RACHEL!!!

1006 days ago
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