Russell Simmons to recover Celsius stock in DOJ settlement

Russell Simmons, the co-founder of Def Jam, has reached a settlement with the U.S. Department of Justice to recover a portion of Celsius Holdings (CELH) stock. The shares are part of a tranche valued at over $350 million, which was previously held by the government following the federal prosecution of Tim Leissner.

Leissner, a former Goldman Sachs banker and the second husband of Simmons’ ex-wife Kimora Lee Simmons, was involved in the 1MDB scandal and pleaded guilty to various charges. The legal dispute involves nearly 10 million Celsius shares that originated from an investment made around 2015. While the exact number of shares Simmons will receive remains undisclosed, court filings indicate he has committed to using at least $8.6 million of the proceeds to pay past-due settlements to creditors.

The investment grew significantly following a three-for-one stock split in 2023. Simmons’ legal proceedings to secure these assets follow years of litigation involving Leissner and the federal government.