Paulson & Co. executives were sued for alleged conflicts in the handling of assets in the bankruptcy of a group of resorts including Miami's Doral golf course, Bloomberg News reported yesterday. Michael Barr, Daniel Kamensky and Jonathan Shumaker were sued in New York state court by Five Mile Capital Partners, which accused them of failure to get the highest value for intellectual property as directors. "The conflicted directors not only ignored these valuable assets, but took affirmative steps to render them less valuable before, during and after the bankruptcy," Five Mile said in the complaint filed on Tuesday. The lawsuit stems from the bankruptcy filing in 2011 of five resorts owned by Paulson, a hedge-fund firm: the Grand Wailea in Hawaii, La Quinta and PGA West in California, the Arizona Biltmore, the Claremont in California and the Doral. Doral was sold to Donald Trump and the other four were sold to Government of Singapore Investment Corp., a sovereign wealth fund, for $1.5 billion.
