Rachel Uchitel, Tiger Woods' first publicly revealed mistress, has returned most of the settlement money she received from Woods and is preparing to sue the attorney who brokered the settlement for her, TMZ reported Monday.
Woods paid Uchitel a settlement — reportedly $8 million-$10 million — with a confidentiality agreement in December 2009 to prevent her from speaking with the media about their affair. The settlement was arranged with the help of celebrity power attorney Gloria Allred.
According to the terms of the settlement, a violation of the confidentiality agreement would mean Uchitel would have to return the money and could be sued by Woods for damages.
Woods attorney Jay Lavely contacted Allred several months ago to say the golfer would sue Uchitel for violating the agreement by going on the VH1 reality series "Celebrity Rehab" to treat an "addiction to love." She did not mention Woods by name on the show.
Uchitel reportedly believed she had not violated the agreement, but Allred convinced Uchitel she would lose if Woods did sue and struck a deal with Lavely to return most of the settlement money.
Sources told TMZ that Allred's deal with Lavely allows her to keep the attorney's fees she received for brokering the settlement.
The sources said Uchitel believes she got ripped off in Allred's deal with Lavely and has hired a legal malpractice lawyer.
The malpractice lawyer has reportedly demanded that Allred pay Uchitel the settlement money she returned or Uchitel will sue her.
Allred told TMZ, "Our law firm no longer represents Ms. Uchitel and we have no comment on this story at this time. However, we are confident that we have always acted appropriately and in her best interests."
