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Lawsuit settled between Tony Hsieh estate and former associate

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LAS VEGAS (KTNV) — A lawsuit has been settled between former Zappos CEO Tony Hsieh's estate and Tony Lee, one of Hsieh's former friends and business partners. That's according to court documents that were released on Monday.

The details of the settlement were not disclosed in documents obtained by Channel 13.

As 13 Investigates previously reported, Lee said he worked in finance and that Hsieh offered him a job handling a project in Park City, Utah. Hsieh was looking at revitalizing the town similar to the way downtown Las Vegas was transformed.

In April 2021, Lee claimed he was owed $7.5 million for the contract he agreed on.

Hsieh died in a house fire in Connecticut in November 2020. He was 46 years old.

Meantime, the battle continues over Hsieh's estate.

Court documents released in November 2022 state that Hsieh was misusing drugs, making bad business deals, and acting erratically before his death — including a growing obsession with fire and candles.

Hsieh's estate is worth an estimated $513 million and several others have filed claims seeking a portion of that money, including a project manager in Utah and two former associates who have since dropped their lawsuits.

As of Tuesday, the next court hearing date hadn't been set.