Malcolm Turnbull’s son pays $500k in legal costs after bitter court dispute

Alex Turnbull has had to cough up half a million dollars after he sued his father’s former business partner.

Former prime minister Malcolm Turnbull’s son has had to pay $500,000 after he abandoned a court case over a share deal that turned nasty against a former business partner of his father’s.

In 2020, Alex Turnbull launched legal action against Pengana capital boss Russel Pillemer for deceptive conduct and alleged he had been misled into accepting cash for the reimbursement of a loan held in Pengana shares.

Court documents stated Mr Pillemer was obliged to pass on information about a proposed merger between Pengana and fund manager Hunter Hall – a merger that eventually did proceed.

That merger stood to increase the value of Mr Turnbull’s equity in Pengana, but he cashed out before it was made official.

In court, Mr Pillemer’s lawyers kiboshed Mr Turnbull’s grievance as a “severe attack of buyer’s remorse”.

Alex Turnbull.

Pengana CEO Russel Pillemer.

NSW Supreme Court Justice Kate Williams SC dismissed the allegation that Mr Turnbull had been misled by Mr Pillemer.

Mr Turnbull appealed Justice Williams’ decision and argued she made a mistake in failing to find Mr Pillemer should have passed on information about the deal.

But he dropped the case when the matter was due to go to a hearing on Thursday.

Mr Pillemer accepted a reduced legal costs payment of $500,000 with a condition it be paid immediately in cash.

He said the appeal should never have gone ahead.

“I am pleased that justice was served in this matter in court proceedings,” Mr Pillemer said.

“It’s now pretty clear for all to see that this case should never have been brought to the courts”.