Stallone Sues Ex-Advisor on Stock Loss
Sylvester Stallone has sued his former business manager, claiming that his financial advice led the actor to lose as much as $10 million on the stock of Planet Hollywood International Inc., a theme restaurant chain.
Stallone, who along with fellow Hollywood celebrities Arnold Schwarzenegger and Bruce Willis helped launch Planet Hollywood in 1996, claims Kenneth Starr of Starr & Co. dissuaded him from selling his 3.9 million shares when the stock traded as high as $20 in 1997.
The star of the “Rocky†and “Rambo†movies claims Starr was biased because he also advised Keith Barish, a Planet Hollywood board member and a large shareholder. Stallone said he was unaware that Starr also advised Barish until last year.
“Starr & Co. did not use their best judgment and undivided loyalty on behalf of Stallone, but instead used their best judgment and undivided loyalty on behalf of Starr’s other client,†according to the suit filed Thursday in Los Angeles Superior Court.
As Planet Hollywood stock plummeted, Starr advised Stallone to hold on because his sale would look bad for the company and the stock was poised to rise, the suit said. Stallone sold his shares for 10 cents apiece, or $295,256, in 2000 after the chain sought Chapter 11 protection.
New York-based Starr & Co. could not immediately be reached for comment.
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