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George Soros: Did Investor Extraordinaire Commit a Major Faux Pas?

August 12, 2011

The media's having a field day with the George Soros, who's on the wrong end of a $50mn lawsuit.  It's not from any regulators, but from the 80-year-old billionaire's (current/former) 28-year-old Brazilian girlfriend.

Adriana Ferreyr filed the suit in New York Supreme Court alleging that Mr. Soros twice reneged on promises to buy her an apartment.  The broken promises caused the former soap opera star severe emotional distress, after she supposedly spent months searching for a suitable apartment with real-estate brokers [C-I: which, in and of itself, can be a traumatic experience]. 

The Relationship.   The couple's relationship started with a chance meeting in the Hamptons in 2006 and, by 2009, Ferreyr started house hunting.  According to the suit, Ferreyr found the perfect place in the Upper East Side, but the $1.9mn asking price greatly exceeded her budget.  Soros allegedly promised to purchase the apartment for her and, in 2010, Ferryr followed through and made an offer - and the Soros company made the purchase.

Shortly thereafter, as these things go, Soros broke up with Ferreyr.  They eventually got back together - but, by that time, Soros had given the apartment to another girfriend.  Ms. Ferreyr alleges that Mr. Soros explained what had happened, which she claims led to a fight that caused the couple to split again. 

According to Ferreyr, they reconciled and got back together - a third time - and Soros promised to buy another apartment.  Ferreyr found a $4mn apartment in the same building as the first.  This prompted Soros to renege, once again, on his promise to buy - apparently, Soros didn't like the idea of having his two girlfriends living in the same building.

William Zabel, a lawyer for Soros, said the lawsuit was frivolous and added that it "is obviously an attempt to extract money from my client, who is a very wealthy man.”

[C-I Note:  Sounds like a very compelling story by the plaintiff.  Perhaps the $'s are out-of-line, but not the facts and circumstances.  Wouldn't be surprised if the public opinion sides with the girlfriend.  At least such a loss won't crimp Mr. Soros' lifestyle - except to reduce his number of girlfriends to just one.]    [Dealbook, 8/11/11]