IMAX CEO Faces Legal Battle Over Insurance Policy
It seems the executives at IMAX are having quite the celebration, but not everyone is on board with the festivities. Richard Gelfond’s ex-wife is struggling to secure a $4.5 million life insurance policy on his behalf.
Gelfond, who leads the impressive $1.57 billion cinema corporation, has reportedly been battling substance issues for years. Allegations suggest he has been using cocaine since 2009 and frequently engages in “excessive” drinking. Linda Stein, his first wife, has claimed in court documents that one insurance company turned him down due to these factors.
According to Stein, at least two other insurers have also refused to cover the 70-year-old Gelfond. She filed these claims in Manhattan’s Supreme Court just last week.
Stein resides in Carnegie Hill, not far from Central Park, where she and Gelfond tied the knot in 1982 and raised two children before their divorce in 2008. She added that Gelfond had insisted on receiving a portion of a retirement fund he may access if he stepped down from IMAX, as noted in her legal documents.
Interestingly, Gelfond’s contract appears to be safe for now. Reports indicate he has secured a $1.2 million base salary, plus bonuses and stock options, with an extension of his agreement with IMAX until December 31, 2028, indicating he plans to hold on to his position for a while longer.
The former couple did come to an agreement allowing Stein to receive Gelfond’s life insurance in lieu of part of his retirement fund. However, she asserts he isn’t cooperating as he should.
Stein claims that his ongoing issues with alcohol and drugs have obstructed her attempts to access that policy.
Gelfond, now residing in the West Village, married again in 2010. Stein expressed her frustration in court documents, stating that she should have realized his actions were jeopardizing her ability to secure that policy.
In light of the situation, she’s seeking to compel the court to set up a trust worth $4.5 million in her favor. Gelfond’s attorneys, on the other hand, have denied her claims, insisting that the allegations lack a factual basis.
