Business & Finance
Russell Simmons to recover portion of seized Celsius stock following legal settlement
The Def Jam co-founder will receive an undisclosed fraction of nearly 10 million shares previously forfeited in the 1MDB scandal, promising to pay past-due settlements to six women.
The short version
- Court filings show Russell Simmons will recover an undisclosed portion of nearly 10 million Celsius energy drink shares previously held by the U.S. Department of Justice.
- The shares were seized as part of the federal prosecution of former Goldman Sachs banker Tim Leissner following his guilty plea in the 1MDB Malaysian bond fraud scandal.
- Simmons has pledged to use the recovered stock to satisfy over $11 million in past-due settlements owed to six women, including accusers of sexual misconduct.
- Kimora Lee Simmons and an associate of Leissner will also receive portions of the recovered shares, while Leissner receives none and the federal government retains the rest.
Key facts
- Court documents docketed on Aug. 24 show Russell Simmons will recover a portion of nearly 10 million Celsius shares held by the Department of Justice.[Billboard]
- The total pool of Celsius shares involved in the federal forfeiture case is valued at over $350 million.[Billboard]
- The stock was seized after former banker Tim Leissner pledged and subsequently forfeited it to satisfy penalties from his 1MDB fraud conviction.[Billboard]
- According to court filings, Simmons pledged to use recovered shares to cover more than $11 million in past-due legal settlement debts owed to six women.[Billboard]
- Kimora Lee Simmons and an investment partner of Leissner will also receive shares under the agreement, while Leissner receives none and the federal government keeps the remainder.[Billboard]
What remains uncertain
- The specific percentage and financial value of the Celsius stock allocated to Russell Simmons and Kimora Lee Simmons were not revealed in the docketed filing.[Billboard]