Sardar Biglari, for the first time, seems concerned about his reputation. He certainly didn’t mind repeated questionable transactions which transformed a small stake in Steak N Shake into majority control of Biglari Holdings(BH), using the company’s own money. He didn’t mind breaking early promises about compensation, or an egregious licensing deal for his own name.
Apparently, he did mind the allegation that he creeped out models on photo shoots for his money-losing Maxim magazine. The NY Post reports that Biglari is suing former fashion director Wayne Gross for violating his nondisclosure agreement, and for making false statements.
Wayne Gross violated the company’s nondisclosure agreement and made disparaging comments about a magazine photo shoot featuring supermodel Alessandra Ambrosio, an eight-page complaint filed in Manhattan state court alleges.
Gross was mentioned in a Dec. 2 column in The Post that described how Ambrosio was upset with one photo of the Monte Carlo shoot that appeared in the magazine.
The column quoted the photographer on the shoot as denying the model had any issue with the shoot or photos.
The suit also alleged the column contained some “false statements.”
The suit highlights an e-mail sent by Gross on July 27 that called the hotel suite used for the photo shoot as being “super cheesy.”
“Hopefully, we can kill the Suite stuff and just used (sic) the boat as it is much stronger and more cohesive,” Gross wrote in the e-mail, the suit alleges.
Biglari seeks an unspecified amount in damages, according to the suit.
In the meantime, while Biglari is busy with supermodels and lawsuits, the company’s stock has continued to drop, closing at $346.34 on Friday, down precipitously from the $420 price where Biglari used company funds to acquire control for himself earlier this year.
Disclosure: The author owns no position in any stock mentioned