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Billionaire Family Feuds: How the Gores, Kochs, Pritzkers, and More Fought Over Their Fortunes

• David (Viacheslav) Davidenko • Season 4

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What happens when incredible wealth becomes a family’s curse rather than a blessing? Brace yourself for surprising tales of billionaire families where fortune fuels fierce battles over inheritance and control. Uncover the cunning maneuvers of Susan Gore, who took the audacious step of trying to adopt her ex-husband to claim a larger piece of the Gore-Tex fortune, only to be thwarted by the courts. Explore the epic feud of the Koch brothers, Bill and Frederick, whose quest for a larger slice of Koch Industries led to an 18-year legal saga, illustrating the often-painful reality that wealth can magnify familial discord.

Join us as we turn the spotlight on tangled family business dramas that resemble Shakespearean tales of power and betrayal. Witness the emotional fallout in Saul's estate feud, as Lillian, the estranged wife, triumphs in court after a protracted battle over a contested agreement with Saul's children. Then, delve into the remarkable saga of the Rollins family, where sibling rivalries over the Orkin pest control empire spin into shocking accusations and legal wrangling. As we set the stage for the Schuen family's U-Haul legacy, prepare for more stories of ambition, innovation, and the personal vendettas that make family empires compellingly complex.

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Speaker 1:

All right, get ready to dive into some seriously juicy drama, because today we're uncovering the wild world of billionaire family feuds.

Speaker 2:

Oh, these stories are fascinating, aren't they? It's like peeking behind the curtain of extreme wealth and realizing that even a billion dollars can't buy you family harmony.

Speaker 1:

It really can't. We're talking inheritance battles, power struggles and enough drama to rival a Shakespearean tragedy, all fueled by unimaginable fortunes.

Speaker 2:

And often involving businesses that have shaped entire industries, which makes it all the more captivating, wouldn't you say?

Speaker 1:

Absolutely. From Gore-Tex to U-Haul, these families built empires but couldn't quite keep it together when it came to internal power dynamics.

Speaker 2:

Exactly. It's a good reminder that money might amplify things, but it doesn't change the basic blueprint of human nature, and sometimes those cracks run deep.

Speaker 1:

Speaking of cracks, let's start with a family known for their innovative spirit the Gores, the masterminds behind Gore-Tex.

Speaker 2:

Ah yes, the fabric that's famous for keeping you dry Turns out. Their family trust was structured in a way that well, let's just say it invited some creative interpretations.

Speaker 1:

Creative how.

Speaker 2:

Well, Bill and Genevieve Gore, the founders of WL Gore Associates, set up a trust that favored larger family branches when it came to dividing their fortune.

Speaker 1:

So the more descendants you had, the bigger your slice of the pie. Seems straightforward enough right?

Speaker 2:

In theory, sure, but it led to some unintended consequences. You see, their daughter, susan Gore, had three children, while many of her siblings had four.

Speaker 1:

Okay, I see where this is going. A smaller family, at least in this case, meant a smaller inheritance. I beg, that didn't sit well.

Speaker 2:

You're catching on. Now imagine feeling like you're potentially missing out on a significant chunk of a multi-billion dollar fortune. What would you do?

Speaker 1:

I don't know. Consult a financial advisor, maybe try to win the lottery. What does Susan do?

Speaker 2:

Well, in 2003, she decided to get, shall we say, resourceful.

Speaker 1:

She legally adopted her 65-year-old ex-husband as her child. She adopted her ex-husband to get a bigger inheritance. You've got to be kidding me. That's next level family drama right there. Yeah, did it work.

Speaker 2:

The courts weren't buying it. The Delaware Supreme Court ultimately ruled that neither Susan nor her adopted child were entitled to any additional inheritance.

Speaker 1:

That's what you call a legal loophole. Slam shut, yeah, but talk about a family reunion story for the ages. So what happened with the rest of the Gore family?

Speaker 2:

Let's just say the saga continued when Susan's brother, bob Gore, passed away. His will specifically excluded Susan from inheriting any part of his estate. Ouch, that's harsh. It gets even more pointed. The document stated that if his children weren't alive, his estate should be divided among his siblings except for Susan.

Speaker 1:

Talk about holding a grudge. Seems like those family dinners must have been a little tense.

Speaker 2:

You can say that again. It highlights how money can sometimes act like a magnifying glass on existing conflicts, turning a private matter into a very public feud.

Speaker 1:

Okay, with that cautionary tale in mind, let's move on to another family known for their strong personalities and no, we're not diving into their political views. Today, instead, we're talking about the battle for control of Koch Industries, which became a major point of contention within the family.

Speaker 2:

This particular feud dates back to the early 1980s and involves brothers, bill Frederick Charles and David Koch. It all started when Bill Koch made a play for control of the family's crown jewel Koch Industries, but his brothers weren't too keen on the idea.

Speaker 1:

So a classic tale of sibling rivalry, but with a multi-billion dollar company at stake.

Speaker 2:

Exactly Three years after his failed takeover attempt, Bill, along with his brother, Frederick, decided to cut their losses selling their shares in the company to their brothers, Charles and David.

Speaker 1:

For how much, if you don't mind me asking.

Speaker 2:

A cool $700 million $700 million.

Speaker 1:

I'd be happy with a fraction of that. What was the problem then?

Speaker 2:

Well, here's the thing Shortly after the sale, Koch Industries' value skyrocketed, turning into the behemoth. It is today. Oh no buyer's remorse times a billion, pretty much. Bill and Frederick, realizing they had sold their shares for a fraction of what they were now worth, felt cheated, and understandably so.

Speaker 1:

I can only imagine To see the family business, the one you were once a part of, become wildly successful without you. That's got to sting.

Speaker 2:

It led to an 18-year legal battle, with Bill and Frederick trying to get a larger piece of the pie, claiming they were misled during the initial sale 18 years.

Speaker 1:

That's longer than some marriages. Did they ever reach a resolution?

Speaker 2:

A settlement was finally reached in 2001, but the details were kept under wraps. A settlement was finally reached in 2001, but the details were kept under wraps. Still, it makes you wonder about the what-ifs, especially considering Koch Industries is now valued at an astronomical $115 billion.

Speaker 1:

Wow, that's not just a pie anymore. That's the whole bakery and the farm the ingredients came from. It makes you wonder was it just about the money, or were there deeper family dynamics at play?

Speaker 2:

That's the billion-dollar question, isn't it? Often these money squabbles are just symptoms of deeper unresolved issues within a family.

Speaker 1:

That makes a lot of sense. If they had found a way to address those underlying issues, maybe they could have avoided a decades-long feud.

Speaker 2:

It's certainly something to think about. Family businesses, especially those with this level of wealth, require open communication, clearly defined roles and sometimes even outside help to navigate potential conflicts.

Speaker 1:

It's like they say, an ounce of prevention is worth a pound of cure, especially when billions of dollars are at stake. You know it's interesting. You bring up communication and clear roles in family businesses, because our next story highlights how even the younger generation, those who haven't necessarily been involved in building the empire, can get caught up in these inheritance battles.

Speaker 2:

You're talking about Lysol Pritzker, right?

Speaker 1:

The Hyatt Hotel heiress yeah, yeah, what's her story?

Speaker 2:

Well, she was only 18 years old when she filed a lawsuit against her own father, Robert Pritzker, and 11 of her cousins 18.

Speaker 1:

That's incredibly young to be taking on your entire family in court. What was the basis of the lawsuit?

Speaker 2:

She claimed that they had manipulated family trust, essentially cutting her and her brother Mackey out of their rightful inheritance of the Hyatt Hotel fortune.

Speaker 1:

Oh wow. So we're not talking about a small sum of money here. That takes some serious guts to go up against your family like that, especially at such a young age. What was the family's response?

Speaker 2:

It was a very mixed bag. Some denied the allegations outright, while others remain tight-lipped. The whole thing spiraled into this very public, very messy legal battle that dragged on for years.

Speaker 1:

Sounds like a PR nightmare for the Pritzker family. I mean these situations always seem to end up in court. Is there any way for families to avoid these public and, let's face it, quite messy legal battles, especially with so much money involved?

Speaker 2:

You're right these situations can get incredibly messy. I think clear and upfront communication from the get-go is crucial. Having everything laid out in black and white, no room for ambiguity can prevent misunderstandings down the line.

Speaker 1:

Yeah, that makes sense Like a family business prenup of sorts.

Speaker 2:

Exactly, and sometimes it can be helpful to have a neutral third party involved, like a mediator or a family business consultant, to help facilitate those tough conversations.

Speaker 1:

So an objective voice to help navigate those choppy waters. It's like they say sometimes you need a little outside perspective to see the bigger picture. But back to Liesel's story. What happened with her case?

Speaker 2:

Well, it dragged on for quite a while, as these things often do, but what I find most interesting is that Liesel maintained throughout the whole ordeal that this wasn't just about the money. She was quoted back in 2003 saying this isn't about cash. I filed because I wanted to know what happened.

Speaker 1:

So it was more about principle seeking truth and accountability, even if it meant potentially damaging those family relationships further.

Speaker 2:

It seems that way it underscores that these disputes often run much deeper than just dollars and cents. It's about power, control, a sense of fairness within a family, and sometimes those wounds go deeper than any.

Speaker 1:

It makes you think about the true cost of these feuds. Yeah, even if you win in court, what have you really gained if you fractured your family in the process?

Speaker 2:

It's a tough pill to swallow, for sure, but for the Pritzkers the story doesn't end with Liesel's lawsuit. It actually led to a major restructuring of the entire family fortune.

Speaker 1:

Oh really, how so.

Speaker 2:

Well, the lawsuit kind of forced the family to air their dirty laundry, so to speak. This led them to the decision to divide up many of their assets, which resulted in the creation of nearly a dozen new Pritzker billionaires.

Speaker 1:

Wow, talk about unintended consequences. So one person's quest for answers triggered a seismic shift in an entire family dynasty.

Speaker 2:

It goes to show you how these events can reshape not just individual lives, but entire industries and even the political landscape.

Speaker 1:

From hotels to politics. The Pritzkers certainly kept things interesting. Now let's shift gears from grand hotel lobbies to the bustling streets of New York City as we delve into the world of real estate with Saul Goldman, a man who was once the Big Apple's biggest landlord.

Speaker 2:

Now Goldman's story is a classic tale of rags to riches, marked by these shrewd real estate investments that led him to own iconic properties like the Chrysler Building.

Speaker 1:

OK, but even with all his success, I have a feeling this wouldn't be on our list if there wasn't a family drama angle. What happened?

Speaker 2:

You're right. Even with a real estate empire, he couldn't escape the drama of a family feud. When he passed away in 1987, a bitter battle erupted.

Speaker 1:

Who was battling whom?

Speaker 2:

This one pitted his four children against his estranged wife, Lillian.

Speaker 1:

A classic tale as old as time. What were they fighting over?

Speaker 2:

The heart of the conflict was a contested agreement that Lillian claimed granted her 33% of Saul's estate.

Speaker 1:

So the estranged wife versus the children, each vying for their share of the pie, was the agreement valid?

Speaker 2:

Well, that was the million dollar question, or should I say multi-million dollar question.

Speaker 1:

I bet. So what's the verdict?

Speaker 2:

It was a long road, let me tell you. They slugged it out in court for five years.

Speaker 1:

Five years. These legal battles get so drawn out.

Speaker 2:

They do, but in the end the court sided with Lillian.

Speaker 1:

So she got her 33 percent.

Speaker 2:

She did, but it makes you wonder about the emotional toll these battles take. Did they ever manage to reconcile? You know, for the sake of family.

Speaker 1:

Yeah, money is one thing, but those rifts can be hard to repair, absolutely.

Speaker 2:

Well after Lillian passed away in 2002, public records indicate that the siblings were able to put aside their differences. They divided her estate equally and, as far as we know, they maintain a relatively cordial relationship to this day.

Speaker 1:

It's a good reminder that even after the stormiest of feuds, there's always a possibility for peace, especially when you remember the importance of family.

Speaker 2:

It's a good reminder for all of us.

Speaker 1:

Okay, we've covered a lot of ground here, from high-tech fabrics to billion-dollar conglomerates, and even scared the heists of New York City real estate.

Speaker 2:

It's been quite the journey.

Speaker 1:

For our next stop. We're trading in those skyscrapers for something a little less glamorous the world of pest control.

Speaker 2:

Ah yes, the Rollins family, the folks behind the Orkin Empire. Their story proves that even in an industry not typically known for glitz and glamour, family drama can reach epic proportions.

Speaker 1:

From the outside, looking in, they seem to have it all a thriving business, extravagant parties and image of unity. But, as we've seen time and again, appearances can be deceiving.

Speaker 2:

That they can. And behind that facade of family harmony, there was trouble brewing.

Speaker 1:

So tell me what kind of creepy crawlers were lurking beneath the surface of this seemingly perfect family.

Speaker 2:

Well, the Rollins family saga is a classic case of what can happen when personal relationships and business interests collide.

Speaker 1:

And when you're dealing with a family business as successful as Orkin, I can only imagine the stakes are pretty high.

Speaker 2:

You're absolutely right. I can only imagine the stakes are pretty high. You're absolutely right. In 2019, Rollins Inc reported a whopping $2 billion in sales, making it the largest pest control company in North America $2 billion with a B, I'm guessing those profits weren't enough to keep everyone happy. Unfortunately not. You see, the seeds of discord were sown when Wayne and John Rollins the brothers who founded Orkin back in 1948, passed the reins to the next generation.

Speaker 1:

Ah, so the age-old tale of sibling rivalry rears its ugly head once again.

Speaker 2:

Precisely Wayne's sons, randall and Gary, took charge, and what started as a seemingly united front quickly devolved into a bitter power struggle.

Speaker 1:

I bet that happens a lot with these family businesses. Everyone thinks they know the best way to run things, but this wasn't just a disagreement over who got the bigger office, was it?

Speaker 2:

Oh no, not at all. This feud escalated dramatically in 2010, when Gary's four children filed a lawsuit against their own father and their uncle Randall.

Speaker 1:

Wait, hold on. The nephews and nieces were suing their father and uncle. Now that's taking family drama to a whole new level. What were they suing their father and uncle? Now that's taking family drama to a whole new level. What were they suing for?

Speaker 2:

They alleged that they were being denied their rightful inheritance. They believed they were being cheated out of their piece of the Orkin pie.

Speaker 1:

Wow, talk about a family dinner gone wrong, but it gets even juicier than that right. You mentioned something about a murder accusation.

Speaker 2:

Yes, sadly, this story takes a dark turn. Ellis Shum, the family patriarch, actually accused his sons, including Joe, of being involved in the death of their brother, sam's wife.

Speaker 1:

Whoa whoa Murder accusations. Now, that's a plot twist I wasn't expecting. Were the accusations true?

Speaker 2:

Well, they were eventually dismissed after another man confessed to the crime.

Speaker 1:

Oh wow, talk about a web of intrigue, but it just goes to show you how deep these family wounds can cut.

Speaker 2:

It's a stark reminder that beneath the surface of even the most successful families, there can be simmering resentments, jealousies and old wounds that can easily be reopened.

Speaker 1:

It's a good reminder that family dynamics are complex no matter how much money is involved.

Speaker 2:

Yeah.

Speaker 1:

So how did this Shakespearean saga finally come to an end?

Speaker 2:

Well, after nearly a decade of legal battles and countless headlines, the family reached a settlement in 2019.

Speaker 1:

Finally. So what was the outcome? Did anyone walk away victorious?

Speaker 2:

The details were kept tightly under wraps, as is often the case with these high-profile settlements, but it was reported that at least some family members were able to reconcile.

Speaker 1:

So they managed to fumigate some of that family drama, at least legally speaking. But it makes you wonder what kind of lasting impact those years of feuding had on their personal relationships.

Speaker 2:

Well, it's safe to say that those wounds probably run pretty deep even with a settlement. But enough about creepy crawlers, for our final act. We're shifting gears from pest control to something a bit more, shall we say, mobile. Get ready to hit the road as we dive into the world of U-Haul and the Schuen family.

Speaker 1:

Okay, u-haul Now. Everyone's familiar with those orange trucks, but I have a feeling there's more to this story than meets the eye.

Speaker 2:

Oh, absolutely. This family's history is full of ambition, innovation and, of course, enough drama to rival a soap opera. They revolutionized the moving industry, but also ended up in a feud for the ages.

Speaker 1:

All right, lay it on me. What's the backstory on this moving truck dynasty?

Speaker 2:

It all began back in the 1940s with LS and Anna Mary Schoen. They co-founded U-Haul with this vision of making moving more accessible and affordable.

Speaker 1:

A noble goal for sure, and I'm guessing it turned into quite the successful venture.

Speaker 2:

Oh, they hit it big. Their innovative approach, you know, renting out trailers instead of just selling them it completely disrupted the industry. But all that success also laid the groundwork for a family feud of epic proportions.

Speaker 1:

OK, I knew there had to be a but in there somewhere. Big families, big money it's a recipe for well, you know, you said it.

Speaker 2:

Now fast forward a few decades and one of their sons, joe Schuman, he orchestrates this bold takeover of the company, effectively forcing his own father, ellis, into retirement.

Speaker 1:

He ousted his own dad. Talk about a power move. What was the family's reaction to that?

Speaker 2:

Oh, let's just say it didn't go over well. His actions ignited a massive legal battle, a war that raged on for an unbelievable 25 years 25 years.

Speaker 1:

Seriously, we're talking about a whole generation consumed by this feud. What were they even fighting about all that time?

Speaker 2:

A lot of the litigation centered around Joe's management of the company and the whole issue of share distribution. Some of his siblings accused him of mismanaging funds, making shady business deals. You know the classic accusations in these situations in these situations.

Speaker 1:

So a classic power struggle, with accusations flying left and right. But this feud went beyond just disagreement over business, didn't it? You mentioned something about a murder accusation earlier.

Speaker 2:

Yeah, unfortunately, things took a very dark turn. Ls Schoon, the family patriarch. He actually accused his sons, including Joe, of being involved in the death of their brother, sam's wife.

Speaker 1:

Whoa hold on a minute.

Speaker 2:

Are we talking about the same U-Haul? We all know? Yeah, a murder mystery on top of everything else. This is heavy stuff. It's a truly tragic twist to an already complicated story. The accusations were eventually dismissed after another man confessed to the crime, but it shows you just how deep the animosity ran within the family.

Speaker 1:

Wow, that's just, I don't even know what to say. It's a good thing they make moving boxes, because this family probably had a lot of baggage, both literally and figuratively.

Speaker 2:

You got that right. But even after all that, after 25 years of lawsuits and accusations, they finally reached a settlement in 2012.

Speaker 1:

25 years Did they all kiss and make up in the end?

Speaker 2:

Well, the details of the settlement were kept hush-hush, as is often the case with these high-profile family feuds, but we do know that Joe and his brother, mark, emerged with significant ownership stakes in Amerco, the parent company of U-Haul.

Speaker 1:

So a truce was declared, but at what cost? Right, I mean decades of legal battles, fractured relationships and a family forever marked by tragedy.

Speaker 2:

It makes you think about the true meaning of success, doesn't it? They built this incredible empire, but at what cost to their own family?

Speaker 1:

It's a sobering thought. Well, we've covered a lot of ground today. From the world of high-tech fabrics to the gritty streets of New York real estate. We've seen how even the wealthiest families aren't immune to feuds and fallouts.

Speaker 2:

And how those conflicts often mirror much more universal struggles. It's like a magnified reflection of the challenges many families face, whether they're worth billions or just trying to make ends meet.

Speaker 1:

It's a good reminder that no amount of money can truly shield you from the complexities of family dynamics. So, as we wrap up this deep dive into billionaire family feuds, what's the key takeaway you hope our listeners walk away with today?

Speaker 2:

I think the biggest lesson is the importance of clear communication, well-defined agreements and proactive conflict resolution, especially when it comes to family and business, because those lines can get blurry fast.

Speaker 1:

Absolutely. And remember it's never too early to have those conversations. Don't wait until a disagreement turns into a full-blown feud. And remember it's never too early to have those conversations. Don't wait until a disagreement turns into a full-blown feud. And hey, if things get really heated, don't hesitate to bring in a neutral third party like a mediator or a therapist.

Speaker 2:

Couldn't agree more. Sometimes you need an objective voice to help navigate those choppy waters.

Speaker 1:

Well said, and on that note we Well said, and on that note we're officially signing off. Thanks for joining us on this wild ride through the world of billionaire family feuds. We'll see you next time for another deep dive.

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David (Viacheslav) Davidenko

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