Lawsuit over fake de Kooning painting is settled
A settlement has been reached in a New York art collector’s lawsuit against a now-defunct gallery that sold him a forged Willem de Kooning painting in 2007 for $4 million.
The terms of the settlement, disclosed in a Wednesday court filing, are confidential, the Wall Street Journal (sub.req.) reports.
John Howard, co-managing partner of Irving Place Capital, a private-equity firm, had sued the once-venerable gallery Knoedler & Co. and its former president, Ann Freedman, for fraud in 2012 for selling him the fake de Kooning.
Freedman claimed she had been duped into the buying the painting by Long Island art dealer Glafira Rosales, who has pleaded guilty to taking part in a scheme to pass off fakes painted by a Queens man as authentic works by major midcentury artists such as Jackson Pollock and Mark Rothko. Rosales is currently awaiting sentencing.
Howard’s lawyer, John Cahill, said his client is pleased the case has been settled.
Luke Nikas, a lawyer for Freedman, said his client is also glad the matter has been resolved. He also noted that criminal charges have not been filed against Freedman or the gallery.
Charles Schmerler, a lawyer representing the gallery and Michael Hammer, the chairman of its parent company, 8-31 Holdings, noted that the court has dismissed all claims against Hammer, which he said vindicates Hammer completely.
The settlement does not affect another lawsuit against Freedman and the gallery by Sotheby’s Chairman Domenico De Sole and his wife, Eleanore, which is still set to go to trial next month in federal court in Manhattan. The De Soles sued Knoedler in 2012 over a fake Rothko painting they bought for $8.3 million in 2004.
Gregory Clarick, a lawyer for the De Soles, said his clients are looking forward to proving the defendants’ fraud at trial. “We are confident that the jury will find that Freedman and Knoedler engaged in a decade-long conspiracy to profit from the sale of fake paintings and will award our clients a full recovery,” he said.
