New York Post

Kavanaugh starring in LA lawsuit

- By RICHARD MORGAN

Embattled Hollywood producer Ryan Kavanaugh is back in the news — and it’s not for a hit movie.

A Los Angeles hedge fund investor claims the head of Relativity Media duped him into coughing up a $2 million, 11th-hour loan to save the business from bankruptcy — only to see the cash go up in smoke with the studio’s Chapter 11 filing.

Kavanaugh (right) told the hedgie, Carey Metz, that Ron Burkle and others would also kick in emergency cash to save Relativity — but that was a lie, it is alleged in a lawsuit filed by the hedgie.

Metz agreed to the June 2015 bridge loan , in part, to save an earlier $10 million investment.

Kavanaugh gave Metz a personal guarantee on the loan.

But the cash did not save Relativity — which tumbled into bankruptcy weeks later, on July 30.

“Kavanaugh’s fraudulent representa­tions” seduced Metz into ex- tending a one-year loan with an interest rate of 8 percent, the suit claims.

Metz admits the agreement was made orally during a meeting at the Santa Monica Airport. It included just “a handshake” — the suit claims.

Not only did Kavanaugh lie about Burkle kicking in $10 million, he lied about using the cash to save Relativity, the suit alleges.

Rather, Kavanaugh took the cash and used it to buy “real estate valued at several million dollars for his personal use,” the 12-page complaint alleges.

Metz, who also does business in Puerto Rico, is suing for fraudulent inducement, breach of oral contract, negligent misreprese­ntation and other claims.

The hedgie claims the loan has not been repaid.

Relativity did not respond to requests for comment, and Kavanaugh could not be reached.

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