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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

No Avatar
76.

kp    

She is a ho that likes to sue---------------omg
then
you have an old bag that likes to sue ============== OMG

who is going to win CALL NANCY GRACE -- SHE CAN PUT IT ON TV SO WE CAN ALL WATHCH (somebody find a boat quick and we can put them all out to sea for ever) Devil Dancing tonight

1160 days ago
77.

Nostradamus    

Ten million $ settlement means Gloria prob got around 4 million, the standard 40%?

1160 days ago
78.

lanie    

LOL This is funny as hell.

What is even funnier is that now she is likely free to discuss Tiger now, but it is unlikely that she will net much money from an interview or book, since Tiger has admitted the affair and he divorced his wife.

If she had been free to discuss this from the jump - she might have made a lot of dough.

Oh well, what going around, comes around.

1160 days ago
79.

ibjujub    

Everyone knows that if you sleep with Gloria Alred, you wake up with flees. Alred committed a felony last year and nobody did anything(Section 8 USC 1324(a)(1)(A)(iv)(b)(iii),2010. Please write to the bar about her and complain. She will lose her license if we keep on complaining. Call 1-800-843-9053 or go to
http://www.calbar.ca.gov/LinkClick.aspx?fileticket=dhPvDU_guk4%3d&tabid=200

1160 days ago
80.

lanie    

The $10 million "settlement" seemed to teeter on the edge of being extortion. Gloria Allred is sketchy.. She used to be esteemed and regarded.. Now she's turned herself in a joke.

I used to watch her daughter's, Lisa Bloom, show all the time on CourtTv.. She's lovely, but I have a feeling she's going down Allred's path unfortunately.. very sad.

1160 days ago
81.

nan    

gloria allred is a famewhore
the other one is pretty much just a regular one..
not surprised if they would screw each other over

1160 days ago
82.

SheisHot    

Why don't people leave this sweet young lady alone? No one here has walked even a footstep in her shoes so they have no clue what she has been through.

Hang in there Rachel!! *hugs*

1160 days ago
83.

cindy    

She gets what she deserves. If she talked as they claimed she did to TMZ, then, she didn't stick to the agreement. She deserves to have to give the money back. Tough T*tty, said the Kitty.

1160 days ago
84.

Kennedy    

How long will it be before Allred represents Casey Anthoney? This world will be a better place when Gloria is dead and gone.

1160 days ago
85.

get real    

Oh Please. I dont believe she returned a Dime to Tiger.

1160 days ago
86.

Tango    

Karma's a bitch eh Rachel?
This is too funny . . . I laughed, and laughed and laughed :)

1160 days ago
87.

josh    

Hahhahahaha this story made my day! It's called KARMA! Happy for Tiger because this woman was only a money hungry slut and I am sooo happy the bitch had to give back the money! How dumb is she talking to TMZ about Tiger when she knew she would lose the 10 million dollars if she broke the confidentiality agreement she signed? Really Dumb!!!

1160 days ago
88.

valeskas    

Good she deserves nothing.

1160 days ago
89.

OooooNooo!    

She returned all of Tiger's money -- except a small "servicing and handling" fee. . .

1160 days ago
90.

Bleh!    

AHAHAHAHAHAAAAA! That's how hoes and lawyers roll!

1160 days ago
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