Families Behind Revlon and Hudson Media Fight Bitter Legal Battle Over Enormous Inheritance
Provided by HG.org
Samantha Perelman is a 23-year-old student at Columbia University, working on a masters of business administration and as a summer production assistant on the set of the HBO show “Girls.” Impressive credentials, to be sure, but more impressive is the legal battle in which she finds herself: she is fighting with her uncle for a share in an estimated $700 million inheritance.
The current legal battle is unfolding in New Jersey. Samantha Perelman is the daughter of Ronald O. Perelman, the 70-year-old financier and chairman of the cosmetics company Revlon, whose own fortune is estimated at roughly $14 billion and the late Claudia Cohen, a former columnist for The New York Post’s Page Six. For years now, Ronald Perelman has been embroiled in legal warfare with Samantha’s uncle, James Cohen, the head of Hudson Media (the same Hudson Media found selling magazines and newspapers in airports around the country). Ronald Perelman claims James Cohen siphoned hundreds of millions of dollars out of his daughter's inheritance. Conservative estimates place the cost of the protracted legal battle in excess of $60 million in legal bills so far, and they are poised to climb even higher with the latest round of hearings.
Until her death in 2007, Samantha's mother Claudia Cohen was an heir to the fortune amassed by her father, Robert B. Cohen, the founder of Hudson Media. Samantha Perelman estimates that her share of the estate would have been valued at almost $700 million when her grandfather died last year, but for the actions of her uncle. Samantha Perelman argues that her uncle, James Cohen, preyed on her sick grandfather before he died in February 2012, using “undue influence” over the 86-year-old to reduce the inheritance that would have been due to her mother and, by extension, to her now that her mother has also passed.
Samantha Perelman argues that the court should validate a 2004 will that she says would have left her mother (and ultimately her) hundreds of millions of dollars. While her mother died before her grandfather, the 2004 will said that in the event of Claudia’s death, Samantha was to inherit her mother’s share of the estate. James Cohen said his father’s decision to reduce his niece, Samantha Perelman's, inheritance in the years before he died were a “rational response by him to the indignity and emotional pain” he suffered from the Perelmans’ litigation. He even claims his father's death was hastened by the stress of the legal wrangling.
The nonjury trial has a witness list of more than 40 people and could take months to hear.
Beyond the current legal fight, there are other disputes between these two families. Ronald Perelman is barred from entering the Cohen family’s house in Palm Beach, Florida, after an incident in which Mr. Perelman allegedly crashed a bar mitzvah. On the other hand, the Perelman's point to what they call James Cohen's conspicuous consumption, referring to his 25,000-square-foot house in Alpine, NJ, that includes 15 bathrooms and 13 fireplaces, and has been featured in Architectural Digest.
The current legal battle has its roots in the events of decades past. Ronald Perelman met Claudia Cohen in 1984 at Le Cirque, and the couple wed a year later. Samantha Perelman was the couple’s only child together, and was born in 1990. Unfortunately, four years after Samantha's birth, Ronald and Claudia filed for divorce. Claudia received a roughly $80 million settlement after an acrimonious divorce battle that played out in both the New York courts and the tabloids. Just a few years later, in 2001, Claudia discovered she had cancer. By that point, she and Ronald Perelman had rekindled a friendship, and he spent millions of dollars trying to find a cure for her. In 2007, just before she died, Ms. Cohen changed her will to make Mr. Perelman, rather than a close friend of hers, executor of her estate.
Almost at once upon her passing, the legal feuding began between the Cohen and Perelman families. In her current dispute, Samantha says that just weeks after her mother’s death, her uncle, James, tried to buy out Claudia Cohen’s stake in a partnership that controlled the Cohen family’s house in Palm Beach, calling the timing of the buyout “hurtful” and “lowball.” James Cohen replied to these allegations by saying that the Cohens were only observing the terms of the partnership and that the discussion was prompted by a call from one of Mr. Perelman’s lawyers, an allegation Mr. Perelman’s lawyers deny.
That round of legal battles uncovered a money transfer that is central to Samantha Perelman’s current lawsuit. In 2008, the Cohen’s sold Hudson Media’s retail operations to a private equity firm. The sale resulted in a payment of roughly $600 million to the Cohen's. Samantha argues that a substantial portion of this payment should have gone to her grandfather, and thus, his estate when he died. As such, it should have passed to her under the 2004 will. Moreover, she claims that James Cohen was siphoning off Hudson Media's assets, a company he alone controlled, for years prior to its sale, further reducing her inheritance.
James Cohen replied that he owned about 90 percent of the assets that were sold, and was entitled to the cash. He also claims his father’s estate planning, dating back to the 1990's, intended for assets to be transferred to him.
In 2008, Ronald Perelman, in his capacity as executor of his ex-wife’s will, filed a flurry of lawsuits against Robert and James Cohen alleging, among other things, that Robert had made an oral promise to Claudia before 1978 to leave half his fortune to her. By the time of these lawsuits, Robert Cohen was already suffering from a debilitating neurological disorder, which can cause problems with thinking and even basic life functions like swallowing. As a result, Ronald Perelman argued that Robert Cohen lacked the mental capacity to change his will at such a late date, and that James Cohen had used his influence over his father to begin misappropriating funds from his father's estate.
That round of legal battles did not go well for the Perelman family. They lost on all but one claim and were penalized $1.9 million for filing a frivolous claim. One barrier in that round of legal battles was the undue influence claim. The trial court found that because Robert Cohen was still alive, he was the only one that would have had standing to bring that claim. Now that he has passed, Samantha Perelman is bringing that claim, contending that her uncle was heavily involved in his father’s estate planning for years, making changes that consistently benefited him to the detriment of her mother and, as her mother's beneficiary, Samantha herself.
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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Until her death in 2007, Samantha's mother Claudia Cohen was an heir to the fortune amassed by her father, Robert B. Cohen, the founder of Hudson Media. Samantha Perelman estimates that her share of the estate would have been valued at almost $700 million when her grandfather died last year, but for the actions of her uncle. Samantha Perelman argues that her uncle, James Cohen, preyed on her sick grandfather before he died in February 2012, using “undue influence” over the 86-year-old to reduce the inheritance that would have been due to her mother and, by extension, to her now that her mother has also passed.
Samantha Perelman argues that the court should validate a 2004 will that she says would have left her mother (and ultimately her) hundreds of millions of dollars. While her mother died before her grandfather, the 2004 will said that in the event of Claudia’s death, Samantha was to inherit her mother’s share of the estate. James Cohen said his father’s decision to reduce his niece, Samantha Perelman's, inheritance in the years before he died were a “rational response by him to the indignity and emotional pain” he suffered from the Perelmans’ litigation. He even claims his father's death was hastened by the stress of the legal wrangling.
The nonjury trial has a witness list of more than 40 people and could take months to hear.
Beyond the current legal fight, there are other disputes between these two families. Ronald Perelman is barred from entering the Cohen family’s house in Palm Beach, Florida, after an incident in which Mr. Perelman allegedly crashed a bar mitzvah. On the other hand, the Perelman's point to what they call James Cohen's conspicuous consumption, referring to his 25,000-square-foot house in Alpine, NJ, that includes 15 bathrooms and 13 fireplaces, and has been featured in Architectural Digest.
The current legal battle has its roots in the events of decades past. Ronald Perelman met Claudia Cohen in 1984 at Le Cirque, and the couple wed a year later. Samantha Perelman was the couple’s only child together, and was born in 1990. Unfortunately, four years after Samantha's birth, Ronald and Claudia filed for divorce. Claudia received a roughly $80 million settlement after an acrimonious divorce battle that played out in both the New York courts and the tabloids. Just a few years later, in 2001, Claudia discovered she had cancer. By that point, she and Ronald Perelman had rekindled a friendship, and he spent millions of dollars trying to find a cure for her. In 2007, just before she died, Ms. Cohen changed her will to make Mr. Perelman, rather than a close friend of hers, executor of her estate.
Almost at once upon her passing, the legal feuding began between the Cohen and Perelman families. In her current dispute, Samantha says that just weeks after her mother’s death, her uncle, James, tried to buy out Claudia Cohen’s stake in a partnership that controlled the Cohen family’s house in Palm Beach, calling the timing of the buyout “hurtful” and “lowball.” James Cohen replied to these allegations by saying that the Cohens were only observing the terms of the partnership and that the discussion was prompted by a call from one of Mr. Perelman’s lawyers, an allegation Mr. Perelman’s lawyers deny.
That round of legal battles uncovered a money transfer that is central to Samantha Perelman’s current lawsuit. In 2008, the Cohen’s sold Hudson Media’s retail operations to a private equity firm. The sale resulted in a payment of roughly $600 million to the Cohen's. Samantha argues that a substantial portion of this payment should have gone to her grandfather, and thus, his estate when he died. As such, it should have passed to her under the 2004 will. Moreover, she claims that James Cohen was siphoning off Hudson Media's assets, a company he alone controlled, for years prior to its sale, further reducing her inheritance.
James Cohen replied that he owned about 90 percent of the assets that were sold, and was entitled to the cash. He also claims his father’s estate planning, dating back to the 1990's, intended for assets to be transferred to him.
In 2008, Ronald Perelman, in his capacity as executor of his ex-wife’s will, filed a flurry of lawsuits against Robert and James Cohen alleging, among other things, that Robert had made an oral promise to Claudia before 1978 to leave half his fortune to her. By the time of these lawsuits, Robert Cohen was already suffering from a debilitating neurological disorder, which can cause problems with thinking and even basic life functions like swallowing. As a result, Ronald Perelman argued that Robert Cohen lacked the mental capacity to change his will at such a late date, and that James Cohen had used his influence over his father to begin misappropriating funds from his father's estate.
That round of legal battles did not go well for the Perelman family. They lost on all but one claim and were penalized $1.9 million for filing a frivolous claim. One barrier in that round of legal battles was the undue influence claim. The trial court found that because Robert Cohen was still alive, he was the only one that would have had standing to bring that claim. Now that he has passed, Samantha Perelman is bringing that claim, contending that her uncle was heavily involved in his father’s estate planning for years, making changes that consistently benefited him to the detriment of her mother and, as her mother's beneficiary, Samantha herself.
Copyright HG.org - Google+
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
