The former chief financial officer of a multibillion-dollar hedge fund founded by Daniel Zwirn sued his one-time business partner on Monday, accusing him of defamation and breach of contract.

In the lawsuit filed in U.S. District Court in Manhattan, Perry Gruss accused Zwirn of failing to pay him money "in connection with his forced exit" from D.B. Zwirn & Co LP in 2006.

A representative for Zwirn could not immediately be reached for comment on the lawsuit, which seeks $9.6 million in damages for defamation and breach of contract.

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