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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
91.

Sapphyre    

The funny part is that NOW Rachel feels like she got screwed. LOL!!!

1201 days ago
92.

Craig Swinson    

Conflict of interest, Gloria is going to go down or pay out. Also note this is a wake-up call to all of Gloria's clients...she hasn't been fighting for you she has been looking out for herself.

1201 days ago
93.

loloagogo    

"Poor Tirger and Gloria...boo Rachel!!" ARE YOU KIDDING ME??? I hope Rachel stands her grounds and has a great lawyer who can finally put the biggest whore on the planet; Gloria Allred the Whore of all Whores, in her place and that's the pocketbook and on blast ALL OVER TMZ FINALLY suing the panties off her skanky ass. As far as Tiger goes he's a pu*sy. My only hope is his sentenece is Gloria and he ride off into the sunset together.

GO TEAM RACHEL!!!!!

1201 days ago
94.

squeeky    

Could Rachel Pukeatell be any UGLIER? Her tan makes her
skin look like leather. Sorry, but next to Gloria...
Gloria looks younger. Rachel...you will look 70 before
you are 40. Stay out of the sun...it won't help you.
You are UGLY. FACE IT. Only a plastic surgeon, and
a HORSE dentist can help you now.

1201 days ago
95.

Sandra     

Karma is a wonderful thing!!! Sounds like Rachel got what she deserved and suing Gloria will not help her in the money department!!!

1201 days ago
96.

some guy    

@HumanNature


I agree. It definitely sounds like Karma had a role in this interesting turn of events.

Oh well... at least Gloria still has her baseball bats.

1201 days ago
97.

Tom    

All I know for sure is that Gloria Allred is the devil. She cares NOTHING about right or wrong, or justice. She cares only for money and fame as it applies to her own life. I am instantly on the other side of any issue she gets involved with.

1201 days ago
98.

Truth    

The amount was never anywhere close to $10 million.

Why would anyone with $10 million be doing a cheapo reality show? TMZ makes stuff up again.

1201 days ago
99.

Kennedy    

Response to post by Howard001 -

Howard your mom got 17 inches, but it had nothing to do with a TV, stop spamming the board with nonsense.

And tell your mom to stay off the 17 inch Alabama black snake.

1201 days ago
100.

Hey Now    

They're both sleazy. Who sleeps with someone's husband and then thinks: hey, I'll get rich off this!

1201 days ago
101.

middleagedcrazy    

@ Curious 3 hours ago --
I'm wondering who else may step forward against Gloria Allred. Violet Kowal, Whitman's housekeeper and the underage prostitute whose name Allred revealed at a press conference comes to mind as the starting three.
____________

And let's not forget her sex demonstrations for little kids.

The Allred woman has become a danger to herself and anyone she represents. As of now, if she is announcing something, I am on the opposite side.

Creepy crazy woman. Sure hope they look into her licensing and legal extortion scams.

1201 days ago
102.

me    

On that one I'm with Rachel. Some lawyers do everything to get $$$.

I've listened to the TMZ interview. Rachel was clever not to reply to questions related to Tiger Woods. She didn't let herself trap though TMZ treated her with all its media experience to get answers. I.m.o. she did NOT violate the confidentiality agreement.

1201 days ago
103.

babyz65    

That doesnt really sound "kosher", Does it? Go Rachel. I hope you win.....

1200 days ago
104.

Rogue Warrior    

I hope RU takes this dumb old tramp straight to the cleaners!!!! I H8 her as much as YOU H8 Casey!!!!! FACTOID!

1200 days ago
105.

ed    

.....ugh! women and money.

1200 days ago
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