Jefferies Financial Group (JEF) is facing a defamation case for allegedly engaging in a smear campaign to force George Weiss to pay debt owned by his bankrupt firm, Bloomberg reported Thursday, citing court filing.
George Weiss is seeking $250 million in damages claiming Jefferies made false accusations against him regarding the use of client funds and a corporate jet, Bloomberg added.
"For several months beginning in early 2024, defendants have knowingly spread demonstrably false claims that Mr. Weiss is a financial criminal, flagrantly misappropriating client funds for personal use," according to the lawsuit, Bloomberg reported.
A Jefferies spokesman reportedly told Bloomberg that the claim is just another attempt by Weiss to get out of the obligation of personal guarantee he gave to Jefferies.
Jefferies did not immediately respond to MT Newswires' request for comment, while Weiss could not be reached.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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