the night before this trial, which has been scheduled for over 2 years, was to begin, the defendants declared bankruptcy in order to stop the trial from going forward. For over 4 years we have been dealing with these spurious legal tactics, originating in the fraud perpetrated against Worddiamonds. They continue their same ‘bad faith’  [intent to decieve] modus operandi. Never straightforward or truthful, here again they attempt to twist the law to suit their own dishonest, dishonorable intention- to deceive quite frankly. Obviously these guys are far from bankrupt!

Contact: Richard Lavinthal 202-596-1176

Daughter of CBS Founder William S. Paley’s Multi-Million-Dollar
Fraud Allegations Against Three High-Profile Silicon Valley
Venture Capitalists
; Evri, Inc.; and Radar Networks, Inc.; To Begin
Monday, February 27th, In San Mateo Superior Court, Judge Rules

Kate Paley’s Fraud Lawsuit Names Steve Hall, a Managing Director
of Paul Allen’s Vulcan Capital, Which Controls Evri; Ross Levinsohn of Fuse
Capital, and Now Yahoo Inc.’s newly named interim CEO,
and Nova Spivack of Lucid Ventures

Superior Court Judge V. Raymond Swope Denied
Summary Judgment Motions by Hall, Levinsohn,
and Vulcan-Owned Evri, on February 23rd

SAN MATEO, CA (February 25, 2012) – In an open-court rarity a California jury will hear a fraud lawsuit against three high-profile Silicon Valley venture capitalists and two entities alleged to have defrauded CBS founder William S. Paley’s daughter, Kate, of her multi-million investment in a start-up.

Steve Hall, of Vulcan Capital (“Vulcan” at www.Vulcan; Vulcan-owned Evri, Inc. (“Evri” at; Ross Levinsohn, of Fuse Capital ( and recently name interim CEO of Yahoo Inc. Nova Spivack of Radar Networks, Inc. (“Radar”); and Radar transferred assets with the intent to defraud Paley of her rights as a creditor, it is alleged.

Misconduct, self-dealing, and fraud allegations previously sealed will be aired publicly in the trial. Jury selection and opening statements will be scheduled at an initial conference with the San Mateo Superior Court trial assignment department on Monday at 9:30 AM.


On Thursday the court denied motions by Hall, Levinsohn and Evri to dismiss claims that they transferred assets with the actual intent to defraud Paley of her rights as a creditor to Radar, the now-defunct Silicon Valley start-up.

Paley’s Complaint alleges fraud, fraudulent conveyance, breach of contract and other claims related to her investment in Radar, an early-stage tech company focused on semantic search technology.

According to Paley’s lawsuit, the defendants actively conspired to cheat her out of her investment in Radar by (i) unlawfully converting her from a creditor to a shareholder; (ii) selling Radar’s assets for less than fair value to Evri, a business controlled by Vulcan, Microsoft co-founder Paul Allen’s investment vehicle; and (iii) not sharing any of the sale proceeds with Paley, while each of the defendants received substantial benefits.

Hall, a managing director of Vulcan, was on the board of directors of both Radar and Evri at the time that Evri purchased Radar’s assets for less than fair value. Levinsohn’s venture capital firm profited from the sale, as did he, and Spivack also benefitted from the sale of Radar to Evri, it is alleged. Radar had only three directors, Hall, Levinsohn, and Spivack.

In their motions for summary judgment, Evri, Hall, and Levinsohn denied any misconduct, claiming Paley did not even have standing to sue as a creditor, an argument Judge Swope rejected. In his ruling, Judge Swope determined that the relevant contracts were not ambiguous and held that, as a matter of law, the defendants did not have the right to convert Paley’s loan to equity.

“I’m very pleased with the Court’s decision and look forward to presenting my case starting Monday,” Paley said.

Paley is represented by Mandel Bhandari, LLP in New York City; and Colt/Wallerstein LLP in Redwood Shores, California

Case Caption: Kate Paley and Word Diamonds, LLC v. Radar Networks, Inc., Nova Spivack, Steve Hall, Ross Levinsohn, and Evri Inc., Case No. Civ-494701, California Superior Court in and for the County of San Mateo.

# # #

Attention Credentialed Reporters and Editors: If you are unable to retrieve the Complaint or Thursday court ruling online from the clerk’s office please call PRforLAW, LLC at 202-596-1176. Both documents will be posted on the homepage by early Sunday.

Contact: Richard Lavinthal 202-596-1176;

the night before the trial was to begin, Ross Levinsohn of Yahoo and Paul Allen of Vulcan Capital declared bankruptcy to stop the trial from going forward. Obviously neither of them is bankrupt monetarily, but perhaps in other ways.

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