The Pritzker family feud may be near a settlement with two young heirs set to split a US$1 billion ($1.4 billion) payment to drop their suit against their father and fellow heirs, a report said this week.
The Chicago Tribune, quoting sources close to the two-year-old case, said the settlement
involving Liesel and Matthew Pritzker could come as early as January 10.
A source close to the case said that negotiations were under way, but would not be more specific.
Liesel, 20, and Matthew, 22, sued the clan two years ago in Cook County Circuit Court in Chicago for roughly US$1 billion each, plus US$5 billion in punitive damages, alleging their father, Robert Pritzker, along with their cousins and a trust administrator, illegally emptied their trust funds.
In court proceedings, both sides agreed Robert Pritzker, brother of founder Jay, was angry at his ex-wife Irene Pritzker and at Liesel's budding acting career (she appears as Liesel Matthews), and transferred money out of the children's trust funds and into trusts designated for other heirs and the family's charitable foundations.
The two suits, since consolidated, have added importance in light of an earlier family settlement agreement that purportedly lays out a plan to split up the US$15 billion family owned conglomerate among the heirs, excluding Liesel and Matthew.
As part of the plan, Wall Street expects the family to take public its Hyatt hotel chain.
The Tribune reported that any payment to Liesel and Matthew may be used as a barometer of what the family thinks the Hyatt chain of 214 luxury hotels and resorts is worth.
The newspaper estimated that a US$1 billion settlement for the brother and sister's 10 per cent stake would value the chain at US$10 billion.
Last month Hyatt said it agreed to buy the AmeriSuites hotel chain as part of its stated effort to broaden its holdings.
The family also owns the Marmon Group of industrial companies, which were run by Robert until his retirement, as well as holdings in real estate and other businesses.
The heirs' suit was set to go to trial last year after court hearings in which the judge removed most of the cousins as defendants but left the trust administrators, including father Robert and cousin Tom Pritzker.
Last week, the Pritzkers realised a US$30 million gain from the US$125 million payment to the Federal Deposit Insurance Corp by accounting firm Ernst & Young for its role in the failure of Hinsdale, Illinois-based Superior Bank FSB. At the time of the failure, the Pritzkers and their associates agreed to pay US$460 million to cover losses on the condition they would share in any recovery from Ernst & Young.
* Secret details about how the Pritzker family divided up the family fortune were closer to being revealed after a court ruling yesterday.
An Illinois appeals court ruled that the case should be open to public scrutiny.
The Pritzker family has sought to maintain secrecy.
The ruling by Illinois 1st District Appeals Court Judge James Fitzgerald Smith made clear the public's right of access should trump the Pritzkers' right to secrecy.
"The trial court abused its discretion in sealing the entire court file," Judge Smith wrote. The Pritzkers argued that publicising the records of the case could violate the privacy of minor children.
The family settlement agreement was not part of the materials the appeals court reviewed and it was unclear if it would become public any time soon, Kraus said.
Calls to the Pritzker's attorney were not returned.
- REUTERS
The Pritzker family feud may be near a settlement with two young heirs set to split a US$1 billion ($1.4 billion) payment to drop their suit against their father and fellow heirs, a report said this week.
The Chicago Tribune, quoting sources close to the two-year-old case, said the settlement
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