5:28pm PT by Debbie Emery
Susan Sarandon Sues Ex-Business Manager for Alleged Conflict of Interest
Susan Sarandon has filed a lawsuit against her former business manager alleging that he breached his fiduciary duty to her by recommending investments that benefited his family.
The lawsuit, filed Wednesday in Los Angeles Superior Court, claims that Richard Francis and his firm, Francis & Nachshon LLP, concealed material facts from Sarandon, such as personal and family connections to potential business opportunities, and that he made false representations about investments, including that "she could sell anytime."
Read the full complaint here.
Francis also allegedly "failed to diversify Sarandon's portfolio, instead investing the majority of her assets in the real estate partnerships that he controlled and had a financial interest in."
He was "obligated to act solely in Sarandon's best interest and place Sarandon's interests above his own. Francis did the exact opposite," according to the lawsuit, and instead recommended that she invest in his own properties.
Francis allegedly earned "millions of dollars," according to the complaint. THR reached out to Francis for comment on the suit.
Sarandon claims she terminated her relationship with Francis in 2013 and then sought to sell her interests, at which point she was "finally made aware of the negative attributes" and that the "investments were essentially illiquid."
The lawsuit seeks to recover "substantial" damages, including "considerable monetary losses including and not limited to reduced value of her interests in Real Estate Partnerships."
The Oscar-winning actress is represented by Andy Baum and Craig Marcus of Glaser Weil Fink Jacobs Howard Avchen & Shapiro.