Barry Sherman didn't wait long to hit back at a group of relatives who are suing him for a piece of Apotex Inc., the generic drug giant Mr. Sherman founded.
Mr. Sherman has cut off money to one relative and filed a lawsuit against another, Kerry Winter, demanding he repay Mr. Sherman more than $8-million in loans.
"I only cut them off last month when they sued me," Mr. Sherman said in an interview Thursday, adding that "this thing with the Winters is just so frustrating because it's just so stupid. Just so stupid."
Mr. Winter declined comment. His lawyer, Malcolm Kronby, was unavailable.
The family has been battling over allegations Mr. Sherman violated a 40-year-old agreement that entitled a group of cousins to a 20-per-cent ownership stake in Apotex. Mr. Winter, his brother and the widow of another brother filed a lawsuit in Toronto last month seeking $1.5-billion in damages from Mr. Sherman and Royal Trust Co., which had a hand in drawing up the agreement.
Mr. Sherman has denied the allegations and said he did his best for the relatives over the years, giving them money for homes and businesses. He also said he particularly tried to help one cousin, Dana, who died of a drug overdose in 1995. Royal Trust has also denied the allegations, arguing in court filings that the agreement expired years ago and had nothing to do with Apotex.
The cousins have acknowledged in court filings that Mr. Sherman, 64, gave them money. Mr. Winter received as much as $15,000 a month and Dana's widow has been given money to support her two children, according to court filings. However, they have alleged that Mr. Sherman used the money to control them. In court filings, Mr. Winter said his monthly payments dropped to $2,000 a month after the relatives filed a suit against Royal Trust Co. last year.
In his lawsuit, Mr. Sherman alleges that Mr. Winter, 45, signed a promissory note last November agreeing to repay $7.9-million on demand. Mr. Winter had borrowed the money over the years to finance a home renovation business and purchase several properties, according to family members. Mr. Sherman is seeking repayment of the promissory note, plus interest, as well as possession of a house in Fenelon Falls, Ont.
Court filings show that Mr. Sherman sent Mr. Winter a letter demanding repayment about a week before the cousins filed their lawsuit.
"It's simply to protect my interests," Mr. Sherman said yesterday. "I've got to realize on the security. But the value of it is far less than I've lent him."
As for Dana's widow, Julia, he said: "I'm not going to give her any more money obviously."
Mr. Sherman expressed frustration at the cousins for pursuing the legal action.
"Their hope is that somehow they'll get some money out of me even though there is no cause of action," he said.
"It's disgusting. It is disgusting. It's bizarre."
He added that he has no intention of settling the case and that he has a long track record of helping others.
"I help all kinds of people because I know I'm very successful and I feel an obligation to help friends, family, and strangers, too. Anybody I can. Who, even amongst wealthy people, would spend countless millions of dollars trying to help cousins make a living? For nothing in return?"
Then he added: "I've done all I can. It's got to come to an end now."
Paul Waldie