As part of the settlement, the entirety of which is not being disclosed, Wilshire Financial agreed that the termination of Wiederhorn and Mendelsohn was “without cause.” The company had been arguing otherwise in an attempt to withhold severance payments. Neither side is saying whether those payments were made as part of the settlement.

Wilshire Financial terminated Wiederhorn and Mendelsohn on September 3 of last year. The two then sued Wilshire and its outside directors for $20 million for wrongful termination.

Wilshire Financial also announced Monday the end to all disputes and pending litigation with Wilshire Real Estate Investment Inc., which Wiederhorn and Mendelsohn still direct. The litigation related to the termination of various agreements and other business relationships between the companies.

Both companies are recovering from the ordeal, which began in the fall of 1998 when Wilshire Financial, a highly-leveraged packager of troubled loans then headed by Weiderhorn and Mendelsohn, collapsed as its market for such securities dried up.

After big losses for both companies in 1999, Wilshire Financial’s share price closed Monday at $1.13, off 13.6 % for the year and a fraction of the $30 a share it once demanded. Wilshire Real Estate shares closed Monday at $2.53 a share, down 19.1% for the year, and well off the $17 it was trading at in 1998.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.