Fund Founder Weiss Loses Defamation Suit Against Jefferies

Hedge fund founder George Weiss has lost his defamation suit accusing Jefferies Financial Group of running a “smear campaign” to pressure him to pay a $100 million debt owed by his firm, Weiss Multi-Strategy Advisers.

New York Judge Phaedra F. Perry-Bond dismissed the suit, saying Weiss’ claims faced a higher-bar because the allegedly false statements were contained in a rough draft of a separate lawsuit Jefferies sent before bringing the actual complaint in 2024. Moreover, Jefferies succeeded in its lawsuit and Weiss was found liable for the debt, Perry-Bond said in a March 20 decision.