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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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106.

me    

Gloria Allred didn't went into exonerating details of the Michael Jackson trial (= the transcripts which told the truth about the grifter family) but used the singer for her own publicity... and to make $$$!

Using the suffering of the entertainer for her own gain though she could have known better by publishing INFORMATION instead of sensational rumors... I.m.o. she's an unethical, bad person.

I hope Rachel gives her back what she deserves! That would make Michael moonwalk in heaven!

1136 days ago
107.

GroundedinReality    

Think about it for a minute. Gloria should keep her piece for negotiating the settlement because she DID her job. Rachel ought to forfeit the money for being stupid enough to go on Celebrity Rehab. Even though she never mentioned Tiger, it can be inferred she was talking about him. Thus, she breached the confidentiality agreement. Gloria Allred is a brilliant attorney. Rachel was smart enough to hire her but then stupid enough to mess up her sweet deal. Rachel this is entirely on you. Do not expect to win the malpractice suit, DO expect to rack up a massive new legal bill.

1136 days ago
108.

Ivan in Phoenix    

I've always thought the reason Tiger gave Rachel $10M was because she had a sex tape of them doing some extra kinky stuff. If she had to turn the video over to Tiger as part of the settlement, then this all makes sense to me. Now she has nothing to bargain with. Tiger knew there was 20 women he had been running around with; why was Rachel worth $10M?

1136 days ago
109.

some guy    

I feel bad for Tiger's and Elin's kids. Not easy if your mom and dad live on different continents.

I hope Tiger sees his kids on a regular basis, or at least use that video cam. Really douchey if he didn't.

1136 days ago
110.

Curious    

MAC -
Hiya :)

I really am beginning to wonder about her. How could any attorney publically announce the name of a minor who was involved in prostitution especially after the other attornies went through great lengths to protect the girl's identity.

I wish I knew what changed the old Gloria Allred, who was a true advocate of women's rights, into the unstable character she is today.

The story is a little vague about exactly which fee is involved. Do they mean the fee from the initial $10 million deal or the fee for negotiating the return of Tiger's money?

1136 days ago
111.

HarryPalms    

What about that Manhattan place she bought?

Nelson Muntz' signature laugh: "HA-Haw!"

1136 days ago
112.

Rafaelle Zuccaro    

A really GOOD combination , a "celebrity Slut" and a Jewish Lawyer"???/ No Difference!!!!

1136 days ago
113.

demoncat    

geez Rachel is mad because one Gloria did her job mostly deciding to keep her from winding up sued by Tiger because she went not only to rehab but on a show. and to save her from facing a lawsuit and losing all her hush money Gloria made a deal where Rachel avoided a lawsuit though Rachel can always start talking about tiger now for some fast cash. as for her malpractice lawsuit against Gloria would find it ironic that Rachel and her new lawer wind up losing and Rachel has to pay Gloria. talk about ungratful former client . Gloria did her job.

1136 days ago
114.

Politico Pablo    

It's all about the dollars, always the dollars with Ms. Allred. If you play with snakes, you're eventually gonna get bitten.

1136 days ago
115.

arn7777    

YES! Disbar this "Glorified" no-account lawyer!

1136 days ago
116.

sickaworkin    

Gloria Allred is just as much a celebrity whore, money mongre, ambulance chaser as the rest of them. There is nothing professional about her and has dragged down the lawyer profession as any one.......as Shakespeare sais, " kill all the lawyers".

1136 days ago
117.

Strunz28    

I now love her...

1136 days ago
118.

Matty    

TMZ portrays Rachel as a victim because they are in collusion with her! She is their source for all of their stories about her in exchange for a flattering slant to the story. Obviously Gloria didn't leak this story and certainly Tiger's lawyers didn't. Rachel is shooting her mouth of****ain and I bet talking about the settlement like this is yet another violation of the confidentiality agreement. Rachel's problem isn't Gloria, it is that she is dumb, arrogant and addicted to fame. And this story only highlights her cozy agreement with TMZ. I hope Tiger's lawyers now go get the rest of the money and more.

1136 days ago
119.

fran    

Yep..Karma is a bitch..go get those two whores..Gloria and Rachel

1136 days ago
120.

fran    

I dont think anyone cares about what Rachel has to say anymore. I dont think anyone can do anymore damage to Tiger, its been done give it a rest...but please Rachel sue the ass off Gloria..you will make a lot of people happy.

1136 days ago
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