In whom do you place your trust?
A lawsuit is brewing. The ugly kind. The kind where nobody wins, really. The kind that puts a child in the middle.
The minor son of Herbalife founder, Mark Hughes, is Alexander Hughes, a 14 year old California resident. He is the only child of Mark Hughes, who died early at the age of 44 years old after taking an antidepressant following a drinking binge (not the biggest promotion for Herbalife, huh?) His death was ruled “accidental.”
Mr. Hughes had previously divorced his wife two years before his death, and thus the bulk of his estate was left to his minor son. The value of the trust estate is currently about $400 million.
Alexander’s mother, Suzan Hughes, a former Hawaiian Tropic model, and thrice married, alleges that the Trustees of Alex’ trust, which include Alex’ paternal grandfather have taken too many fees and otherwise refuse to provide for him. The Trustees have fired back that Suzan is seeking additional compensation for herself in the guise of payments and assets to Alex.
Ms. Hughes had previously filed papers to oust the Trustees on the basis of breach of fiduciary duty - and was unsuccessful. Now, she is trying again, this time alleging other grounds, including excessive fees.
It’s a sad saga for Alex, who has been involved in what attorneys for the Trustees have referred to as “one of the most contentious trust and estate proceedings on record.”
Stay tuned to see what happens.
