A Los Angeles investor has voluntarily dismissed a lawsuit he filed earlier this year against Matthew Szulik, the former chairman and CEO of Red Hat.
The suit, filed by Jason Galanis in federal court in Massachusetts, alleged that Szulik received millions from illegal security sales as part of an elaborate tax-evasion scheme.
Szulik described the accusations as "utter nonsense" in a statement released through his lawyer shortly after the suit was filed in January. He said Galanis was attempting to divert attention from a lawsuit that his own family filed in federal court in North Carolina late last year.
Since the dismissal of Galanis' suit in early April, Szulik's lawyers have filed a motion seeking more than $100,000 in attorney's fees from Galanis.
Galanis' lawyers are objecting to both the amount of attorney fees Szulik is claiming and the repayment demand itself.
Szulik stepped down as CEO of Raleigh software company Red Hat in 2008, citing family health problems. He stayed on as chairman, resigning that post in August. He lives in Raleigh.
The Galanis lawsuit said Szulik has a personal net worth of more than $250 million.
In the lawsuit Szulik filed last year in North Carolina, he accused his family's former financial advisers of losing $60 million through improper investments and fraud.
Brothers Jason and Jared Galanis are named in Szulik's suit, which says that companies tied to them have received more than $4 million of Szulik family money from the firm TAG Virgin Islands.
TAG was run by James Tagliaferri, a longtime friend and business associate of Szulik's.