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Herbalife trustees win round in battle with founder's wife. (Wall Street West).


A Superior Court judge said he would dismiss a lawsuit see king to remove the trustees of the estate of Herbalife founder Mark Hughes This article is about the Welsh footballer. For other people with the same name, see Mark Hughes (disambiguation).
Leslie Mark Hughes OBE (born November 1, 1963 in Ruabon, Wrexham, Wales), nicknamed Sparky
, who died in 2000 of a drug and alcohol overdose overdose /over·dose/ (o´ver-dos?)
1. to administer an excessive dose.

2. an excessive dose.


o·ver·dose
n.
An excessive dose, especially of a narcotic.
.

In a ruling made public last week, Judge Thomas Stoever said he found "no evidence" that the trustees of the Hughes Family Trust, which controls a $250 million fortune to benefit Hughes' only son, Alexander, abused their fiduciary discretion.

In May 2001, Hughes' ex-wife, Suzan, filed suit seeking to remove the three trustees, each of whom was a Herbalife executive and received a large payout when the Los Angeles-based company was sold for $685 million to two investment firms in July 2002.

Suzan Hughes claimed that the trustees--including Jack Reynolds Jack Reynolds may refer to:
  • Jack Reynolds (1869-1917) - English footballer who played for both Ireland and England
  • Jack Reynolds (1881-1962) - an English footballer who was later the manager of Ajax Amsterdam
, the child's paternal PATERNAL. That which belongs to the father or comes from him: as, paternal power, paternal relation, paternal estate, paternal line. Vide Line.  grandfather--had engaged in self dealing, violating their fiduciary duties Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary
legal duty - acts which the law requires be done or forborne
 due to conflicts of interest and animosity toward Alexander and Suzan, his mother.

Suzan Hughes' lawyer, Hillel Chodos, said the dismissal would be appealed as soon as it is signed next month.

"I believe that Suzan brought the case because she's looking after her son Alex and hopes to ultimately vindicate her position," Chodos said.

Meanwhile, lawyers for the Hughes Trust said they filed motions to recoup recoup

To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss.
 $1.2 million in attorneys' fees spent defending Suzan Hughes' efforts to replace the trustees. "The false allegations brought against us as to our integrity and fairness were hurtful--particularly to Mr. Reynolds who is Alex's grandfather," said Conrad Klein, another of the trustees.
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Article Details
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Title Annotation:Trustees of Hughes Family Trust is battling Suzan Hughes
Author:Palazzo, Anthony
Publication:Los Angeles Business Journal
Article Type:Brief Article
Geographic Code:1U9CA
Date:Jan 20, 2003
Words:246
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