On July 20, 2009, Perry A. Gruss, the former chief financial officer of the hedge fund Highbridge/Zwirn Special Opportunity Fund, sued his ex-partner, Daniel B. Zwirn, in the United States District for the Southern District of New York for defamation and breach of contract.  Gruss accuses Zwirn of defamation for allegedly making him the “scapegoat” for Zwirn’s improprieties, including the purchase of a private jet with client capital, and asserts this defamation ruined his professional standing and diminished his employment opportunities.  Gruss also accuses Zwirn of breaching their partnership agreement because Zwirn allegedly failed to pay Gruss amounts due him in connection with his forced exit.  We detail the allegations underlying the defamation and breach of contract claims.