Weiss Multi-Strategy Advisers LLC, a bankrupt hedge fund, is currently in talks with Jefferies Financial Group to potentially settle a lawsuit concerning claims that Jefferies pressured the firm into paying $20 million before its bankruptcy filing. The lawsuit is part of a broader legal dispute in which Jefferies is trying to recover approximately $30 million in bonuses disbursed to Weiss employees prior to the hedge fund’s collapse. Weiss founder George Weiss has countered that he was unfairly threatened by Jefferies and denied liability regarding over $100 million in debt. Bankruptcy Judge Martin Glenn has encouraged both parties to pursue mediation and aims for a resolution to their disputes soon.
