Peter Thiel and his hedge fund Clarium Capital Management have been accused of fraud by the investment firm Amisil Holdings, according to a suit filed in U.S. District Court last month. The suit alleges that Clarium did not properly share its profits from the IPO of PayPal nor from its subsequent acquisition by eBay Inc.
The suit claims that although Clarium received a large return from the $70 million IPO of PayPal in 2002 and its subsequent sale that same year to eBay for $1.5 billion, Amisil has not received any return on from its investment in the Clarium fund. Amisil seeks to recover the value of its investment, which it said is worth as much as $18 million.
In addition to managing the hedge fund, Thiel, a co-founder of PayPal, currently serves as a general partner with other former PayPal members at The Founders’ Fund in San Francisco. —Alastair Goldfisher